Microsoft Surpasses Q3 Estimates, Stock Rises 6% After Strong Earnings

Microsoft reported strong quarterly earnings, with revenue rising 13% to $70.1 billion and net income up 18% to $25.8 billion, surpassing Wall Street expectations and leading to a 6% jump in its share price after hours. Growth was fueled by robust demand for cloud and AI services, with Azure and related offerings surging 33% year-over-year, and artificial intelligence contributing significantly to this momentum. CEO Satya Nadella emphasized Microsoft's innovation across the AI stack, noting the company's focus on expanding output and reducing costs for businesses. While the company’s fundamentals remain solid, analysts note that future growth could hinge on sustained AI adoption and careful monitoring of capital expenditure. Despite historical growth trailing some peers, Microsoft’s consistent performance and ongoing AI investments suggest continued strength, though investors remain attentive to forward guidance and market volatility. The company’s revenue across all divisions exceeded expectations, reinforcing its leading position in cloud and enterprise software.