GoKawiilMicrosoft posts $36.6bn quarterly profit days after unveiling major job cuts
Microsoft reported net profit of more than $36.6bn and revenue of $92.3bn for the quarter ending September, a 19% year-on-year increase driven largely by 30% growth in its cloud business. The results came just days after the company said it would offer buyouts to around 60,000 employees as part of cost-cutting tied to heavy AI investment. Shares rose nearly 2.9% in after-hours trading following the announcement.
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The juxtaposition of record profits and mass layoffs underscores how tech firms are reallocating resources toward AI infrastructure even while reporting strong earnings, which could fuel scrutiny over whether job cuts are about efficiency or funding AI bets. Investors appear to be rewarding Microsoft's cloud growth, but the company's own warning about risks from 'substantial investments' in AI suggests uncertainty about long-term payoff remains. The results may further intensify debate about whether the roughly $700bn big tech plans to spend on AI this year is sustainable.
- Microsoft's quarterly profit exceeded $36.6bn, up sharply on revenue of $92.3bn, a 19% annual rise.
- The earnings followed an announcement offering buyouts to about 60,000 workers amid heavy AI spending.
- Cloud revenue grew 30%, and shares rose almost 2.9% after hours, though Microsoft flagged AI investment risks.
Source: bbc.co.uk — Watch Our Pick Of Standout Clips Across The Bbc, 2026-10-29
Published there as: “Microsoft profits soar days after announcing thousands of layoffs”
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