Microsoft Reports Strong Q3 Earnings as Cloud Growth Drives Revenue Surge

Microsoft surpassed analyst expectations in its fiscal third-quarter results, with revenue reaching about $70 billion and operating profit rising significantly, driven by strong performance across its business segments, particularly Azure cloud services. Azure's accelerating growth, fueled by increasing enterprise adoption of AI solutions, stood out as a key driver, despite some signs of slowing compared to previous quarters. The company also issued robust guidance for the upcoming quarter, projecting continued strength in cloud and AI-related revenue. Management emphasized operational efficiency and the broad adoption of Microsoft Cloud and AI as central to its success. However, there are indications that Microsoft is slowing some early-stage AI data center projects, sparking debate among investors about the pace and sustainability of its AI investments. Overall, Microsoft’s results reinforced its leadership in cloud and AI, sending its stock up nearly 7% in after-hours trading.