Microsoft earnings blow past estimates, shares up 6.5% after-hours
Shares of Microsoft spiked more than 6.5% after the company beat earnings expectations. The tech giant reported revenue of $70.1 billion, up 13% year on year. Diluted earnings per share were $3.46, easily beating FactSet’s analyst consensus of $3.22.
Net income was $25.8 billion, a year-on-year increase of 18%. Analysts were expecting $24 billion.
Breaking down the results by the company’s businesses:
☁️ 🤖 “Intelligent Cloud” (Azure, server products): $26.8 billion in revenue, up 21% year on year
📝 📊 “Productivity and Business Processes” (Microsoft 365, LinkedIn, Dynamics): $29.9 billion in revenue, up 10% year on year
💻 🎮 “More Personal Computing” (Windows, Xbox, Bing): $13.4 billion in revenue, up 6% year on year
Microsoft CEO Satya Nadella said:
“Cloud and AI are the essential inputs for every business to expand output, reduce costs, and accelerate growth. From AI infra and platforms to apps, we are innovating across the stack to deliver for our customers.”
Capital expenditures for the quarter were $16.7 billion, up 52% year on year. Analysts were expecting $16.2 billion.
Over the past few months, the industry has watched Microsoft closely as reports said the company was canceling leases for data centers, including pausing some projects mid-development.
A retreat by Microsoft — which has $14 billion invested in OpenAI — could signal an oversupply of AI computing resources, sending a chill throughout the industry.
