Microsoft’s shares experienced a significant uptick, rising 5.6% in late trading after the company announced impressive financial results for the March quarter. The surge was largely attributed to robust performances in its Azure cloud computing segment, bolstered by increasing demand for AI technologies.
For the quarter, Microsoft reported a revenue of $61.9 billion, marking a 17% increase from the previous year and surpassing the consensus estimate of $60.9 billion by FactSet. The company also reported earnings of $2.94 per share, which exceeded analyst expectations of $2.82 per share.
The Productivity and Business Processes segment, which includes Office and other software solutions, posted revenue of $19.6 billion, a 12% increase and at the high end of Microsoft’s forecasted range. The Intelligent Cloud unit, which encompasses Azure, reported revenue of $26.7 billion, up 21% and exceeding the forecast range. Notably, Azure’s growth rate accelerated to 31%, with a significant contribution from AI-related growth.
The More Personal Computing division, covering gaming, Windows, and Surface hardware, also performed well, with revenues of $15.6 billion, an increase of 17% and well above the projected range.
Microsoft’s overall cloud revenues climbed to $35.1 billion, up 23% from the previous year. Commercial bookings saw a 29% year-over-year increase, indicating robust business momentum. The company also highlighted substantial capital expenditures of $14 billion to support burgeoning demand in cloud and AI offerings, alongside a strong cash flow from operations at $31.9 billion, up 31%.
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Additionally, Microsoft continued its shareholder returns, repurchasing $2.8 billion of its stock during the quarter.
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