Microsoft has reported better-than-expected Q1 results, driven by growth in its cloud computing and PC businesses. Revenue rose 13% to $56.5 billion, surpassing analysts' estimates. The strong performance is attributed to customer anticipation of Microsoft's AI offerings. The company's Intelligent Cloud unit reported higher-than-expected revenue, with a 29% increase in Azure revenue. Microsoft's search advertising revenues are growing slower than other segments, but there was a 10% increase in search and news advertising revenue, excluding costs. Microsoft is integrating AI into its products, including a new tool called "Copilot." The company expects strong growth in Azure and higher revenue from its Windows-based business segment in Q2.