Microsoft beats estimates on cloud growth
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The news: Microsoft topped quarterly revenue expectations, driven by a 33% rise in Azure cloud-computing sales, exceeding Visible Alpha estimates of 29.7%.
The numbers: Total revenue rose 13% to USD70.1 billion for the third quarter ended March 31, above the $68.42 billion average analyst estimate (LSEG).
The Intelligent Cloud unit, which houses Azure, posted revenue of USD26.8 billion, compared with expectations of USD26.17 billion. Adjusted profit was USD3.46 per share, also beating the USD3.21 estimate.
Microsoft shares rose more than 6% in after-hours trading following the result release.
Capital expenditures rose 52.9% to USD21.4 billion, below the USD22.39 billion Visible Alpha estimate.
The context: The strong result comes amid concerns over AI demand, US tariffs and potential excess capacity. Microsoft has invested heavily in AI infrastructure, including a planned USD80 billion in data centres this year.
The sources: Microsoft release , Reuters
