REDMOND, Wash. (AP) — Microsoft said Wednesday that its revenue for the October-December quarter was $81.3 billion, up 17% from the same time last year as it furthers its goal to expand global adoption of its artificial intelligence tools.
The company reported net profit for the quarter of $30.9 billion, or $4.14 per share, beating Wall Street expectations. Those results excluded the impact from Microsoft's investments in ChatGPT maker OpenAI.
Microsoft was expected to earn $3.91 per share on revenue of $80.31 billion for the October-December quarter, according to analysts surveyed by FactSet Research.
Microsoft's profit was higher, at $38.5 billion, or $5.16 per share, when not incorporating its OpenAI investments, reflecting a new accounting practice the company says it will be using going forward.
Those investments reflect OpenAI's restructuring last year. Microsoft had a roughly 27% percent, or $135 billion stake, in OpenAI as the startup, originally a nonprofit, has converted itself into a new for-profit public benefit corporation.
While no longer OpenAI’s exclusive cloud provider, a relationship that helped bankroll the AI company's early growth, Microsoft also will retain commercial rights to OpenAI products through 2032.
Sales from Microsoft’s AI-focused cloud computing business segment was $32.9 billion for the last three months of the year, up 29% from the same time last year and above the $32.4 billion expected by analysts polled by FactSet.
Despite beating expectations, Microsoft stock dropped nearly 5% in after-hours trading after it released its earnings report.
Zacks Investment Research analyst Bryan Hayes said the dip likely reflected “investor scrutiny” over Microsoft's large amounts of spending on the infrastructure of computer chips and data centers needed to power AI.
Microsoft CEO Satya Nadella said on an earnings call with investors that the company is still in the “beginning stages” of AI diffusion, a term for spreading the usage of AI to a variety of sectors.
FILE - The logo of Microsoft is seen outside its French headquarters in Issy-les-Moulineaux, outside Paris on May 13, 2024. (AP Photo/Thibault Camus, File)
MIAMI (AP) — Paolo Banchero had 31 points and 12 rebounds, Anthony Black scored 26 points and the Orlando Magic beat the Miami Heat 133-124 on Wednesday night to snap a four-game skid.
Desmond Bane finished with 23 points on 10-of-16 shooting and Jalen Suggs scored 16 for the Magic, who are 3-0 against the Heat this season.
Simone Fontecchio scored 23 points in 19 minutes for the Heat. Norman Powell added 22 points and Bam Adebayo had 21.
Franz Wagner (left ankle sprain) missed his fourth straight game for the Magic while Miami was without Tyler Herro (ribs) and Davion Mitchell (shoulder).
The start of the game was delayed by seven minutes because one of the rims was uneven.
The Magic went on a 14-0 run in the fourth quarter and led 121-104 with 5:47 remaining before the Heat rallied and got within 128-122 on Powell’s three-point play with 1:25 left. Banchero and Suggs made two free throws each in the final minute to secure the win.
Orlando finished with 36 assists and shot 16 of 38 from 3-point range.
Down nine at halftime, the Magic outscored the Heat 40-20 in the third period behind 13 points from Banchero and 10 from Black. Orlando forced seven turnovers and had a 7-1 advantage in offensive rebounds in the quarter.
Miami erased a 14-point deficit late in the first quarter and outscored Orlando by 16 in the second to lead 68-59 at the break. Fontecchio scored 14 points, including three 3-pointers, in the second.
Magic: Host Toronto on Friday.
Heat: At Chicago on Thursday in a game rescheduled from Jan. 8, when unplayable court conditions at United Center forced a postponement. It's the first of three games against the Bulls in a four-day span.
AP NBA: https://apnews.com/hub/nba
Orlando Magic forward Jonathan Isaac (1) grabs a rebound after Miami Heat center Kel'el Ware (7) missed the basket during the second half of an NBA basketball game Wednesday, Jan. 28, 2026, in Miami. (AP Photo/Marta Lavandier)
Miami Heat forward Simone Fontecchio (0) is pushed back by Orlando Magic forwards Jonathan Isaac (1) and Tristan da Silva (23) during the second half of an NBA basketball game Wednesday, Jan. 28, 2026, in Miami. (AP Photo/Marta Lavandier)
Miami Heat center Bam Adebayo (13) defends Orlando Magic forward Noah Penda (93) during the first half of an NBA basketball game Wednesday, Jan. 28, 2026, in Miami. (AP Photo/Marta Lavandier)
Orlando Magic guard Desmond Bane (3) looks to pass the ball as Miami Heat guard Dru Smith (12) defends during the second half of an NBA basketball game Wednesday, Jan. 28, 2026, in Miami. (AP Photo/Marta Lavandier)
Orlando Magic forward Paolo Banchero (5) drives to the basket as Miami Heat forward Jaime Jaquez Jr. (11) defends during the first half of an NBA basketball game Wednesday, Jan. 28, 2026, in Miami. (AP Photo/Marta Lavandier)
