“Roughly 40% will be recognized in revenue in the next 12 months, up 17% year over year.”

In context

“arnings per share was $3.46, an increase of 18% and 19% in constant currency. Results exceeded expectations driven by focused execution from our sales and partner teams. We continue to see strong demand for our cloud and AI offerings as they help customers drive productivity, increase efficiencies, and grow their businesses. And, again this quarter, revenue from our AI business was above expectations. Commercial bookings increased 18% and 17% in constant currency, significantly ahead of expectations again this quarter, driven by an Azure commitment from OpenAI. We also saw consistent execution across our core annuity sales motions and continued long-term commitments to our platform. Commercial remaining performance obligation increased to $315 billion, up 34% and 33% in constant currency. Roughly 40% will be recognized in revenue in the next 12 months, up 17% year over year. The remaining portion, recognized beyond the next 12 months, increased 47%. And this quarter, our annuity mix was 98%. FX was roughly in line with expectations on total company revenue, segment level revenue, and operating expense growth. FX decreased COGS growth by only 1 point, 1 point unfavorable to expectations. Microsoft Cloud revenue was $42.4 billion, ahead of expectations, and grew 20% and 22% in constant currency. Microsoft Cloud gross margin percentage was 69%, in line with expectations, and decreased 3 points year over year driven by the impact of scaling our AI infrastructure. Company gross margin percentage was also 69%, down 1 point year over year driven by scaling our AI infrastructure. Operating expenses increased 2% and 3% in constant currency, lower than expected due to”