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Microsoft beats on top and bottom lines with 40% Azure growth
Azure and other cloud services revenue rose 40% as Microsoft’s AI investments and enterprise demand helped lift revenue and earnings above Wall Street estimates.
- On Wednesday, Microsoft Corporation reported third-quarter revenue of $82.9 billion, beating Street consensus estimates, with earnings of $4.27 per share and Azure revenue rising 40% year-over-year.
- Microsoft CEO Satya Nadella said the AI business surpassed a $37 billion annual revenue run rate, up 123%, driving aggressive capital expenditure that rose 49% to $31.9 billion.
- Shares fell nearly 2% in extended trading Wednesday as investors weighed AI competition, while smaller rival Google Cloud posted 63% revenue growth that easily surpassed 50.1% estimates.
- Earlier this week, Microsoft overhauled its OpenAI deal to lock in a 20% revenue cut through 2030, though sluggish adoption of Copilot 365 has raised competitive concerns.
- Microsoft rolled out its first employee buyout program in more than five decades earlier this month as massive cloud infrastructure spending forces the company to manage operational costs.
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Total News Sources43
Leaning Left6Leaning Right3Center11Last UpdatedBias Distribution55% Center
Bias Distribution
- 55% of the sources are Center
55% Center
L 30%
C 55%
15%
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