:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-21480098261-40bf82ae095b49bda91bc0dbd7341cd1.jpg "Microsoft logo")
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Microsoft (MSFT) delivered fiscal first-quarter earnings that topped Street expectations, but its cloud revenue growth missed estimates.
The tech titan’s third-quarter revenue rose 16% year-over-year to $65.59 billion, above the analyst consensus from Visible Alpha. Net income at $24.67 billion or $3.30 per share was up from $22.29 billion or $2.99 per share a year earlier and higher than expectations.
Microsoft’s Intelligent Cloud segment, which includes its Azure cloud computing platform, drew revenue of $24.09 billion, up 20% but short of the Street’s estimate of $28.97 billion.
Shares of Microsoft ticked 0.7% higher in extended trading following the release. They were up more than 15% for 2024 through Wednesday’s close.
Microsoft’s Results Come as Big Tech Faces Pressure to Show Gains From AI
Microsoft’s results come a day after Google parent Alphabet (GOOGL) beat analysts’ expectations and CEO Sundar Pichai said the company’s investments in artificial intelligence (AI) are “paying off and driving success.”
Microsoft, like Alphabet and other tech giants, has boosted its investments in AI this year to secure its position as a leader in the space, raising concerns about higher spending and whether its AI efforts will be worth the cost.
