Microsoft (MSFT) reported impressive fiscal third quarter earnings, surpassing analysts’ expectations on both the top and bottom lines thanks to the success of its cloud computing business. CEO Satya Nadella highlighted the impact of Microsoft Copilot and Copilot stack in driving AI transformation across various industries.
Following the announcement, Microsoft’s stock surged by 5%, reflecting investor confidence in the company’s performance. The tech giant reported earnings per share of $2.94 on revenue of $61.9 billion, exceeding Wall Street estimates of $2.83 EPS on $60.88 billion in revenue.
Microsoft’s commercial cloud revenue reached $35.1 billion, surpassing analyst projections of $33.93 billion. The company also saw strong revenue in its Productivity and Business Processes segment, Intelligent Cloud, and More Personal Computing divisions.
Despite facing stiff competition from rivals like Google parent Alphabet and Amazon, Microsoft’s shares have risen by more than 10% year to date. The company’s AI ambitions received a significant boost with a $1.1 billion agreement with Coca-Cola to utilize Azure cloud services and AI technology.
Microsoft has been actively expanding its AI capabilities, hiring key industry experts and partnering with startups to enhance its offerings. The company’s continued focus on AI innovation and strategic partnerships positions it well for future growth in the rapidly evolving tech landscape.