Unlike Google: Microsoft beat expectations – and the stock is soaring

Microsoft published quarterly reports with revenues of $92.3 billion, above expectations, thanks to a 48% surge in Azure cloud business. Net profit stood at $36.6 billion. The stock rose more than 4% in after-hours trading.

Microsoft published quarterly reports that exceeded analyst expectations, with revenues of $92.3 billion – a 19% increase compared to the same period last year. The main growth came from the Azure cloud division, which surged 48% due to demand for AI services like Copilot. Net profit stood at $36.6 billion, also beating forecasts. In response, the company's stock rose more than 4% in after-hours trading. However, capital expenditures reached $45.2 billion in the quarter, an amount intended to support demand for computing power as part of an 'arms race' in AI. Alongside the success, the gaming (Xbox) and Windows divisions recorded declines: Xbox services revenue fell by 2%, hardware sales dropped by 14%, and Windows revenue fell by 22%. The company offered voluntary retirement plans to about 60,000 employees as part of cost-cutting and a focus on AI.