Microsoft on Wednesday reported an 11% increase in profit for the July-September quarter compared with the same period last year, as investors looked for signs that the company’s huge spending on artificial intelligence bear fruit.

The company reported quarterly net income of $24.7 billion, or $3.30 per share, above Wall Street expectations.

The Redmond, Washington-based software company reported revenue of $65.6 billion in the quarter, up 16% from a year ago.

Analysts polled by FactSet Research expected Microsoft to earn $3.10 per share on revenue of $64.6 billion.

Microsoft doesn’t report revenue specifically related to AI products, but says it has integrated the technology and its AI assistant, called Copilot, across all of its business segments, particularly in its Azure cloud computing contracts.

Microsoft’s productivity business segment, which includes its Office email suite and other work-oriented products, grew 12 percent to $28.3 billion.

Microsoft’s cloud-focused business segment grew 20% from the same period last year to $24.1 billion for the quarter ended September 30.

Its personal computing business, led by its Windows division, grew 17% to $13.2 billion. Microsoft and computer makers that run its Windows operating system this year unveiled a new class of AI-enabled laptops as the company faces increased competition from Big Tech rivals by offering generative AI technology capable of composing documents, creating images and serving as a realistic personal assistant at work or at home House.

Building and operating AI systems is expensive, and Microsoft said it spent $20 billion in the quarter, mostly on its cloud computing and AI needs.

Microsoft CEO Satya Nadella in a statement Wednesday highlighted the company’s efforts to inspire customers to apply AI platforms in the workplace, as AI transforms jobs and tasks of work.

Nadella, now in his tenth year as CEO, saw his annual compensation increase 63% this year to $79 million, according to a statement filed ahead of Microsoft’s upcoming annual shareholder meeting in December. This is despite Nadella offering to reduce his cash bonus to reflect his personal responsibility in managing cybersecurity threats.

Earlier this year, a scathing report A federal review panel found that “a cascade of security breaches” by Microsoft allowed state-backed Chinese hackers to break into the email accounts of top U.S. officials.