Microsoft Shares Surge 8.4% After Q3 Earnings Beat Expectations

Microsoft exceeded analyst expectations in its third-quarter earnings, reporting $3.46 per share on revenue of $70.1 billion, with shares rising over 8% in premarket trading. The company's Azure cloud business was a major driver, growing 33%—well above forecasts—with AI workloads contributing significantly to this acceleration. Wall Street analysts remain overwhelmingly bullish, with no 'sell' ratings and most considering Microsoft a 'strong buy,' citing its robust growth in cloud and AI segments. CEO Satya Nadella highlighted the importance of cloud and AI for business expansion, emphasizing the integration of AI tools such as GitHub Copilot, now used by over 15 million people. Despite minor concerns over operating margins and broader market volatility, Microsoft’s strong performance and positive guidance have reinforced investor confidence. The company's ongoing investments in cloud and AI, especially its partnership with OpenAI, are viewed as key growth drivers by both analysts and investors.