**Microsoft Reports Historic Earnings Amid AI Boom**

Microsoft recently announced its most successful quarterly earnings in its 50-year history, driven by advancements in generative artificial intelligence. This news comes amidst a busy stretch of financial updates from tech giants, with Google's earnings report released earlier this week and upcoming reports from Amazon and Apple.

This quarter marks the beginning of Microsoft's 2025 fiscal year and introduces a revised reporting structure for its business segments. This change aims to offer a clearer comparison between Microsoft's Azure and Amazon Web Services (AWS), its main competitor in enterprise cloud computing. However, Bernstein analyst Mark Shmulik has cautioned that this new reporting format may initially cause confusion among investors as they adjust their expectations for Microsoft's diverse business operations.

Microsoft's prominence in the tech industry is further underscored by its impressive financial performance. In the recent fiscal year, the company reported a net income of $88 billion, making it one of the most profitable companies in the United States, only surpassed by Apple and Berkshire Hathaway.

In terms of stock performance, Microsoft's shares have seen an astounding 87% increase over the past two years up to Wednesday's close, according to data from FactSet. This growth rate significantly outstrips the S&P 500's 54% gain and Apple's 50% rise in the same period, reflecting investors' confidence in Microsoft's ongoing innovation and market leadership.