Microsoft released its FY23 Q4 results, beating analysts’ expectations on strong cloud performance.

Microsoft’s revenue was $56.2 billion, an increase of 8%. Its operating income was $24.3 billion, up 18%. Most notably, the company’s net income came in at $20.1 billion, an increase of 20%.

“Organizations are asking not only how – but how fast – they can apply this next generation of AI to address the biggest opportunities and challenges they face – safely and responsibly,” said Satya Nadella, chairman and chief executive officer of Microsoft. “We remain focused on leading the new AI platform shift, helping customers use the Microsoft Cloud to get the most value out of their digital spend, and driving operating leverage.”

Microsoft execs credited strong cloud growth as the driving force behind the company’s results.

“We delivered a solid close to the fiscal year driven by Microsoft Cloud quarterly revenue of $30.3 billion, up 21% (up 23% in constant currency) year-over-year,” said Amy Hood, executive vice president and chief financial officer of Microsoft.

Microsoft has been leading the industry in its rollout of AI tech across its platform, and the company has been nipping at Amazon’s heels in the cloud industry. It appears those efforts are paying off.