Microsoft Stock Jumps as Strong Cloud and AI Performance Boost Earnings
Microsoft (MSFT) posted strong fiscal third-quarter results, beating analysts’ expectations and sending its stock up more than 7% in after-hours trading on Wednesday.
Key Numbers:
Revenue: $70.07 billion, up 13% year-over-year
Net Income: $25.82 billion ($3.46 per share), up from $21.94 billion ($2.94 per share) last year
Stock Movement: +7% after hours; down 6% year-to-date as of Wednesday's close
The standout performer was the Intelligent Cloud division, which includes Microsoft’s Azure cloud services. Revenue for this segment surged 21% to $26.75 billion—beating forecasts. Microsoft projects this segment will grow another 20% to 22% in the fourth quarter.
CEO Satya Nadella emphasized the importance of cloud and AI, saying they are now “essential inputs for every business to expand output, reduce costs, and accelerate growth.”
On the earnings call, CFO Amy Hood reaffirmed Microsoft's plan to invest $80 billion in infrastructure for fiscal 2025. She also warned of potential AI capacity constraints beyond June due to strong demand.
Microsoft (MSFT) posted strong fiscal third-quarter results, beating analysts’ expectations and sending its stock up more than 7% in after-hours trading on Wednesday.
Key Numbers:
Revenue: $70.07 billion, up 13% year-over-year
Net Income: $25.82 billion ($3.46 per share), up from $21.94 billion ($2.94 per share) last year
Stock Movement: +7% after hours; down 6% year-to-date as of Wednesday's close
The standout performer was the Intelligent Cloud division, which includes Microsoft’s Azure cloud services. Revenue for this segment surged 21% to $26.75 billion—beating forecasts. Microsoft projects this segment will grow another 20% to 22% in the fourth quarter.
CEO Satya Nadella emphasized the importance of cloud and AI, saying they are now “essential inputs for every business to expand output, reduce costs, and accelerate growth.”
On the earnings call, CFO Amy Hood reaffirmed Microsoft's plan to invest $80 billion in infrastructure for fiscal 2025. She also warned of potential AI capacity constraints beyond June due to strong demand.