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Microsoft beats on top and bottom lines with 40% Azure growth
Azure and other cloud services revenue rose 40% as Microsoft’s AI investments and enterprise demand helped lift revenue and earnings above Wall Street estimates.
- On Wednesday, Microsoft Corporation reported third-quarter revenue of $82.9 billion, beating Street consensus estimates, with earnings of $4.27 per share and Azure revenue rising 40% year-over-year.
- Microsoft CEO Satya Nadella said the AI business surpassed a $37 billion annual revenue run rate, up 123%, driving aggressive capital expenditure that rose 49% to $31.9 billion.
- Shares fell nearly 2% in extended trading Wednesday as investors weighed AI competition, while smaller rival Google Cloud posted 63% revenue growth that easily surpassed 50.1% estimates.
- Earlier this week, Microsoft overhauled its OpenAI deal to lock in a 20% revenue cut through 2030, though sluggish adoption of Copilot 365 has raised competitive concerns.
- Microsoft rolled out its first employee buyout program in more than five decades earlier this month as massive cloud infrastructure spending forces the company to manage operational costs.
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Key PointsMicrosoft's Azure growth didn't accelerate as much as its peers' cloud computing businesses did.Both AWS and Google Cloud are accelerating much faster than Azure right now.Longer term, AI could pressure Microsoft's Office business.10 stocks we like better than Microsoft › Software giant Microsoft (NASDAQ: MSFT) reported its fiscal third quarter of 2026 (the period ended March 31, 2026) this week, and the headline numbers looked solid: …
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Total News Sources47
Leaning Left7Leaning Right3Center12Last UpdatedBias Distribution54% Center
Bias Distribution
- 54% of the sources are Center
54% Center
L 32%
C 54%
14%
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