Investors can exhale after META's meltdown as MSFT just reported better-than-expected revenues in Q3 of $61.86 billion (estimate $60.87 billion).
All the business segments also beat expectations:
Productivity and Business Processes revenue $19.57 billion, estimate $19.54 billion
More Personal Computing revenue $15.58 billion, estimate $15.07 billion
With the AI-exposed segments strong:
Microsoft Cloud revenue $35.1 billion, estimate $33.93 billion
Intelligent Cloud revenue $26.71 billion, estimate $26.25 billion
“This quarter Microsoft Cloud revenue was $35.1 billion, up 23% year-over-year, driven by strong execution by our sales teams and partners,” said Amy Hood, executive vice president and chief financial officer of Microsoft.
Azure revenue gained 31% in the quarter, above an average prediction of 29%, picking up slightly from the 30% growth in the previous period.
“Microsoft Copilot and Copilot stack are orchestrating a new era of AI transformation, driving better business outcomes across every role and industry," said Satya Nadella, chairman and chief executive officer of Microsoft.
Investors are liking what they are seeing from the earnings so far with MSFT up around 5% after hours, erasing the META-driven losses during the day...
Microsoft will provide forward-looking guidance in connection with this quarterly earnings announcement on its earnings conference call and webcast.
