Microsoft Q3 Results: Revenues rise 13% to $56.5 billion, beating analysts estimates

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OpenAI, are yet to be launched. However, corporate buyers have shown much enthusiasm for AI solutions born out of collaboration with the ChatGPT creator. "The results indicated that artificial intelligence products are stimulating sales and already contributing to top and bottom-line growth," said Jesse Cohen, senior analyst at Investing.com.

"What AI is doing ... is opening up either new conversations or extending existing conversations or getting us back in touch with customers that we maybe weren't doing as much with," Iversen told Reuters. Bob O'Donnell, chief analyst at TECHnalysis Research told the agency that Microsoft's :strong messaging" on AI has had and impact amd the trend shows that Azure is gaining market share against competitors.

Copilot, the company's $30/month tool for a small number of Microsoft 365 customers as part of a pilot project, is also generating interest, the report said. Copilot summarises a day's worth of emails into a quick update and will be commercially available in November, it added. Users who opt for Copilot will have to upgrade various Microsoft-based systems to use the tool.

Microsoft has forecast an estimated growth rate of 26-27 percent for Azure, against analysts expectation of 25.1 percent; and revenue forecast of $25.1-25.4 billion for the cloud segment against estimates of $24.94 billion, it said. For the Windows segment, the company forecast of $16.5-16.9 billion beats estimates of $14.52 billion. Notably, Microsoft's forecast includes acquisition of Activision, while it is not clear if analysts' numbers do.