Microsoft revenue beats estimates despite 60,000 buyouts

Microsoft reported quarterly revenue of $92.3 billion and profits exceeding $36.6 billion on Wednesday. The results surpassed analyst expectations, which had projected approximately $90.6 billion in revenue and $35.1 billion in profit. The stock gained value in afternoon trading following the release of the securities filing.

The financial surge coincides with a major workforce reduction. The company offered voluntary buyouts to roughly 60,000 employees two days prior to the earnings announcement. This number represents about a quarter of the total staff. Microsoft is spending heavily on artificial intelligence infrastructure to support its operations.

Azure cloud computing led the growth, expanding by 48 percent during the September quarter. CEO Satya Nadella stated that the company is providing greater capability, choice, control, and cost-efficiency for customers across its entire stack. This performance follows a similar move in April, when seven percent of the US workforce received the option to retire early.

Headcount has declined in recent months. Regulatory filings show the company employed 223,000 people globally at the end of June, down from 228,000 at the end of 2025. The buyout offer marks the second instance of this year where Microsoft invited employees to leave voluntarily.

Hardware launches also feature prominently in current strategy. Microsoft announced a Surface Ultra laptop running on Nvidia artificial intelligence chips earlier this month. The device costs more than $2,500. Apple released a similar touchscreen MacBook this week, reflecting a trend toward devices that process AI tasks locally rather than relying solely on remote datacenters.

Next steps include continued investment in AI capabilities. The company aims to reduce dependence on cloud datacenters for processing. The new hardware is designed to handle more computing on-device. This shift seeks to improve speed and lower costs for users.