Microsoft results top Wall Street targets, driven by AI investment
Microsoft beat Wall Street estimates for third-quarter revenue and profit on Thursday, driven by gains from adoption of artificial intelligence across its cloud services, and the company's shares jumped more than 4% in extended trade.
Executives forecast ranges for current quarter cloud revenue that were mostly above Wall Street targets.
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Offering CollegeCourseWebsiteIndian School of BusinessISB Professional Certificate in Product ManagementVisitIIT DelhiIITD Certificate Programme in Data Science & Machine LearningVisitIIM LucknowIIML Executive Programme in FinTech, Banking & Applied Risk ManagementVisit The rise in Microsoft shares after the bell lifted the company's stock market value by $128 billion as profit and revenue growth overshadowed its higher-than-expected capital expenditures. In contrast, Facebook and Instagram parent Meta's market capitalization fell by $200 billion on Wednesday after it warned of rising AI expenses and issued a lower-than-anticipated revenue forecast.
«Microsoft's AI-powered earnings demonstrate that doubling down on innovation is paying off,» said Jeremy Goldman, senior director of briefings at Emarketer, pointing to the company's early moves in generative AI, such as its large investment in ChatGPT maker OpenAI.
Microsoft revenue rose 17% to $61.9 billion in the quarter ended March, exceeding the consensus estimate of $60.80 billion, according to LSEG data. Earnings per share of $2.94 topped Wall Street's target of $2.82.
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