Microsoft revenue beats estimates despite buyouts

Microsoft stock climbed Wednesday afternoon as the company reported quarterly figures that exceeded Wall Street forecasts. The earnings release arrived just 48 hours after the firm announced voluntary separation offers for approximately 60,000 staff members, roughly a quarter of its global workforce.

The company recorded total revenue of $92.3 billion and profit of more than $36.6 billion for the quarter ending in September. FactSet data indicated analysts had projected revenue of $90.6 billion and profit of $35.1 billion. Chief Executive Satya Nadella stated in a filing that the team is delivering greater capability, choice, control, and cost-efficiency for customers across the entire stack.

Growth in the Azure cloud computing division fueled the financial results. That unit expanded by 48 percent during the September quarter. The earnings report follows a pattern of workforce reductions tied to heavy spending on artificial intelligence. In April, Microsoft offered early retirement options to 7 percent of its US employees. That was the first voluntary buyout of the year.

Regulatory filings show the company employed 223,000 people globally at the end of June. That number is down from 228,000 at the end of 2025. The current buyout offer targets about 60,000 positions, further reducing the headcount as the firm invests in AI infrastructure.

Microsoft also introduced new hardware earlier this month. The Surface Ultra laptop runs on Nvidia artificial intelligence chips and carries a price tag above $2,500. Apple released a similar touchscreen Macbook this week. These launches aim to allow devices to process AI tasks locally, reducing dependence on remote cloud datacenters where computing is slower and costlier.

The next scheduled event is the company's upcoming shareholder meeting, where executives will address the capital allocation strategy for AI investments. The board has not announced new dividend dates, but the stock price action Wednesday suggests investors are confident in the return on those expenditures.