picture alliance / Contributor / Getty Images
Microsoft (MSFT) reported fiscal third-quarter revenue and profits that surpassed analysts’ expectations, sending shares higher in extended trading Wednesday.
The tech titan’s revenue grew 13% year-over-year to $70.07 billion, above the analyst consensus from Visible Alpha. Net income of $25.82 billion, or $3.46 per share, rose from $21.94 billion, or $2.94 per share, a year earlier, topping Wall Street’s estimates.
Microsoft shares rose over 7% in after-hours trading. The stock was down 6% for the year so far through Wednesday’s close.
The gains came as revenue from Microsoft’s Intelligent Cloud segment, which includes its Azure cloud computing platform, improved 21% to $26.75 billion, above expectations. Looking ahead, Microsoft said it also expects the segment to deliver 20% to 22% growth in the fourth quarter.
“Cloud and AI are the essential inputs for every business to expand output, reduce costs, and accelerate growth,” CEO Satya Nadella said. “From AI [infrastructure] and platforms to apps, we are innovating across the stack to deliver for our customers.”
During Microsoft’s earnings call, CFO Amy Hood reiterated the company’s plan to spend $80 billion on infrastructure in fiscal 2025. Hood noted demand for AI has continued to grow, to the point Microsoft expects “to have some AI capacity constraints beyond June.”
This article has been updated since it was first published to include additional information and reflect more recent share price values.
Read the original article on Investopedia