Microsoft stock jumps 5% as cloud growth drives earnings and revenue beat
Azure revenue climbed 48% to $33.2 billion as Microsoft beat Wall Street estimates and said it will report cloud sales in dollars each quarter.
- On Wednesday, Microsoft reported $92.3 billion in revenue for the first quarter of its 2027 fiscal year, marking the start of a new financial year for the software maker.
- The company introduced a new financial reporting structure, splitting businesses into Agents and Infra and Devices and Consumer, to clarify cloud performance against rivals Amazon Web Services and Google Cloud.
- Azure revenue surged 48 percent to $33.17 billion, while capital expenditure reached $45.2 billion to secure hardware and energy for AI technologies.
- Shares of Microsoft rose about 4 percent in extended trading on Wednesday, surpassing cloud revenue expectations despite broader Wall Street unease over debt-fueled spending.
- While Big Tech is expected to pump more than $700 billion into AI infrastructure this year, Microsoft remains the only hyperscaler projected to stay cash flow positive next year.
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Morgan County Citizen
rtl.luMicrosoft beats expectations fueled by Azure cloud business
Microsoft shares popped more than five percent Wednesday afternoon after it reported better than expected revenue and profit, fueled by its Azure cloud computing division which grew by 48 percent in the September quarter.
Its Azure platform, which leases AI's computing power and tools to companies, has seen its revenues jump by 48% over a year. Revenue, more than a third of which is based on Azure, reaches $92.3 billion in the last quarter and Microsoft expects more than 96 billion over the current quarter, above expectations. Financial Director Amy Hood welcomed an even faster growth of Azure for the current quarter, of at least 49%. "Customers' demand continues…
Microsoft has good news for shareholders: Revenue and earnings were higher than expected in the last quarter. The stock increases significantly, the trend continues, the price could rise to a record high.
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