Microsoft CEO Satya Nadella says software is the “most adaptable resource” to combat “inflationary pressures of all kinds.”
- Microsoft CEO Satyanadera In the event of a recession, the company will focus on both supporting its customers and supporting stock prices. Amidst the uncertain economic outlook on Trump’s so-called “liberation day” tariff fallout, Microsoft posted a strong quarter, with all three businesses exceeding expectations.
Microsoft CEO Satya Nadella doubles customer-first at the $2.9 trillion software giant strategy Among economic challenges such as inflation and growth.
Nadella said the company will first focus on its customers and ultimately fuel the rise of Microsoft. Microsoft shares rose more than 7.7% in after-hours trading on Wednesday, and have risen more than 1.5% from a year ago after posting strong quarterly financial results on Wednesday.
“If you agree with the argument that software is the most adaptable resource, I think we need to fight against all kinds of inflationary pressures or all kinds of growth pressures.
“And if there is, there is probably more of that idea: a way to make sure we are helping our customers, and of course, we are trying to share profits,” he added.
Amidst the ongoing economic uncertainty during the fallout of Donald Trump’s trade policy, Nadella’s Microsoft was not only avoided, but conquered quarterly expectations from January. Quarterly revenues increased by more than 13% year-on-year to $700.1 billion, while net income reached $25.8 billion, an 18% increase.
Microsoft’s cloud computing business, including Azure, reported revenues increased by 21% from the previous year to $26.8 billion. While Microsoft’s cloud computing business, which is highly scrutinized by investors, typically recommends ongoing demand for AI infrastructure, Chief Financial Officer Amy Hood emphasized that it is a non-AAI business in Azure.
The AI business continues to “have a large part of our outperformance and where we were expected to be in the non-AI portion of our business,” Hood said.
Additionally, Microsoft has surpassed quarterly guidance across the company’s three major business sectors. Productivity and business units, which revolve around Microsoft 365 products, have increased revenue by over 10% to over $29.9 billion. The company’s personal companies increased 6% quarterly, with revenues of $13.4 billion, exceeding $12.8 billion from the projected $12.4. Overall, profits rose 17.76% year-on-year.
In his remarks, Nadella highlighted the company’s ability to shift infrastructure to meet the evolving client needs if the US falls into a recession.
Microsoft “is very focused on how to help customers when there is turbulence in macros,” Nadella replied.
This story was originally introduced Fortune.com