Microsoft Q3 Earnings Surpass Estimates with 33% Cloud Growth

Microsoft reported third-quarter earnings that surpassed analyst expectations, with revenue reaching approximately $70 billion and earnings per share of $3.46, which fueled a more than 6% surge in after-hours stock trading. The company's robust performance was driven by significant growth in its Azure and cloud services, with Azure revenue climbing 33% and AI integration contributing notably to this momentum. The Intelligent Cloud segment continues to be the primary engine of growth, reinforcing Microsoft's competitive edge against rivals like Amazon AWS and Google Cloud. Microsoft’s ongoing investments in AI, particularly through its Microsoft 365 Copilot and broader cloud stack, have positioned the company to benefit from accelerating enterprise demand, although it has paused some early-stage AI projects due to infrastructure constraints. Additionally, the company announced plans to end Windows 10 support in October 2025, which is expected to bolster revenue in its More Personal Computing segment and drive a push toward Windows 11 adoption. Overall, Microsoft's results highlight resilience amid broader tech industry slowdown concerns and a clear strategic emphasis on cloud and AI as drivers of future growth.