Microsoft Reports Strong Q1 Earnings

Investing.com — Microsoft reported Wednesday fiscal first-quarter results that topped Wall Street estimates, driven by the increasing contribution from its AI services.

Stock Information

Microsoft Corporation (NASDAQ: MSFT) was up 0.7% in recent after-hours trading on Wednesday.

Earnings Report

The company reported Q1 earnings per share (EPS) of $3.3 on revenue of $40.59 billion. Analysts polled by Investing.com anticipated an EPS of $5.21 on revenue of $40.18 billion.

The unexpected growth was largely supported by the expanding impact of the company’s artificial intelligence offerings.

Azure Growth

Azure, Microsoft’s cloud business, grew by 33%, just surpassing analyst estimates of about 32%.

Growth in Azure was fueled by a 12-point contribution from AI services, compared to 11 points in the last quarter, amounting to an estimated $1.5 billion in quarterly revenue, according to a note from RBC.

Capital Expenditures

Fully burdened capital expenditures (CapEx) were reported high at $20.0 billion, which RBC indicated could be a factor influencing stock performance during after-hours trading.