PRESSR: Microsoft's earnings posts strong results, led by cloud and AI

Dubai, UAE: Microsoft Corporation MSFT has reported outstanding quarterly results, once again beating market expectations and reinforcing its leadership position in cloud computing and artificial intelligence.

The highlight of the quarter was Azure, Microsoft’s flagship cloud platform, which recorded a 39% year-on-year increase in revenue in constant currency, surpassing analyst expectations of 34%. In a notable first, Microsoft also disclosed Azure’s annual revenue, which has exceeded USD $75 billion, underscoring the platform’s pivotal role in the company’s enterprise growth strategy.

Total revenue for the quarter reached USD $76.4 billion, an 18% increase year-over-year, while earnings per share (EPS) surged to USD $3.65, comfortably beating Wall Street estimates. The strong performance was broad-based, with growth across cloud, productivity, and personal computing segments.

Despite a record capital expenditure (Capex) of USD $24.2 billion—driven by continued investments in AI and data center infrastructure Microsoft’s operating income climbed by 23% to USD $34.3 billion. Margins continued to expand, highlighting the company’s operational efficiency even amid heavy investment.

For me, the key investor takeaway is that Microsoft is spending big to stay ahead in AI but is still growing profit faster than revenue a true sign of a quality business.

Josh Gilbert, Market Analyst at eToro, said: "Microsoft’s latest results clearly demonstrate its dominance in cloud and AI sectors. The accelerated Azure growth and disciplined capital spending showcase a company perfectly positioned to lead the next wave of technology innovation."

“We are witnessing a once-in-a-generation technology transformation, and Microsoft is leading the way with accelerating AI monetisation and unmatched cloud momentum,” said Josh Gilbert, Market Analyst at eToro.

With Azure growth outpacing expectations and AI integration gaining speed across its platforms, Microsoft is demonstrating a rare ability to scale innovation while driving profitability cementing its position at the forefront of the global tech shift.

Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.

The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.

To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.