Sales reached $82.9 billion in the January-to-March quarter, exceeding Wall Street analysts' expectations.
Microsoft Corp (NASDAQ:MSFT) reported fiscal third quarter earnings that exceeded Wall Street expectations, driven by continued strength in its cloud and artificial intelligence businesses. The company posted revenue of $82.9 billion for the quarter ended March 31, up 18% year over year.
Microsoft shares fell 2% in after market trading even after posting stronger-than-expected results for its fiscal third quarter, with cloud and artificial intelligence driving broad-based growth that offered some relief to investors who had grown wary of the company's heavy spending on AI infrastructure. Total revenue rose 18% year-over-year to $82.9 billion, beating analyst estimates of $81.4 billion.
Sales reached $82.9 billion in the January-to-March quarter, exceeding Wall Street expectations.
Microsoft reported quarterly cloud revenue growth in line with analyst expectations, a sign that its hefty spending on artificial intelligence was paying off despite intensifying competition from Big Tech rivals.
Microsoft is set to post its latest quarterly results after the closing bell today, with the stock seen potentially hitting its highest point in months following the report.
OpenAI's latest partnership with Amazon landed a day after the company restructured its relationship with Microsoft for the second time in six months. Diane Dresser, OpenAI's revenue chief, said the "two are not related in any way.
A pivotal moment for global markets is set to unfold as Alphabet, Amazon, Meta and Microsoft prepare to report earnings on the same day, offering a rare, concentrated look into the health of the artificial intelligence economy. The simultaneous results from the four technology giants, which together account for a significant share of the S&P 500, are expected to provide critical insight into whether the massive investments being poured into AI infrastructure are translating into sustainable growth.
The US stock market has seen a massive reallocation of capital toward artificial intelligence (AI) infrastructure stocks in recent years. Yet, a paradox has emerged – several of the sector's most indispensable leaders are still trading at valuations that arguably discount their multi-year growth trajectories.
OpenAI models are now available in limited preview through Amazon Bedrock, a platform for building generative artificial intelligence (AI) applications and agents.
With the cloud narrative now better understood, Microsoft has an opportunity to refocus investors around software and dispel negative sentiment.
Microsoft is set to post its latest quarterly results after the closing bell on Wednesday, with the stock seen potentially hitting its highest point in months following the report.