Microsoft Shares Rise on Strong Earnings and Positive Outlook for Cloud and AI Growth
Microsoft (NASDAQ:MSFT) shares rose nearly 8% in premarket trading after reporting stronger-than-expected revenue guidance driven by robust performance in its cloud computing and artificial intelligence businesses. The company reported adjusted earnings of $4.74 per share on revenue of $90.01 billion, surpassing analyst expectations. Azure revenue grew 43% year-over-year to a record level, exceeding estimates. Microsoft also added 31 new data centers globally during the quarter and maintained its capital expenditure plans for calendar year 2026 at around $175 billion. Analysts noted that despite underperforming many of its peers this year, recent results provide reason to revisit MSFT shares. Investor concerns over AI infrastructure costs remain, especially after Alphabet reported negative free cash flow due to increased spending on AI servers and data centers.
Tickers: $MSFT
Topics: artificial_intelligence capital_expenditure cloud_computing stock_performance