Microsoft stock jumps 5% as cloud growth drives earnings and revenue beat
Azure revenue hit $33.2 billion and Microsoft said it will reorganize reporting into two segments as AI spending and layoffs continue.
- 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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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.
Microsoft's Big Bets on AI Start to Pay Off
Microsoft Corp. reported better-than-expected cloud revenue, suggesting the company continues to reap the benefits of its massive investment in artificial intelligence. Sales at Azure were up 48%. Revenue from a commercial deal with OpenAI totaled $10 billion. Bloomberg's Ed Ludlow and Anurag Rana of Bloomberg Intelligence report. (Source: Bloomberg)
The technology giant's sales totalled $92.3 billion in the third quarter, representing an annual increase of 19%.
Microsoft hits 10 quarters of record- breaking revenue in a row
Whatever the future of AI might be, the current situation is still very good for Microsoft. The tech giant reported yet another record for quarterly revenue on Wednesday: $92.3 billion, a 19% increase over the year-ago quarter.
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