Microsoft reports strong Q3 results, driving cloud growth amidst economic caution

Despite signs of economic pressure, Microsoft’s robust cloud revenue and AI investments have propelled its stock, reassuring investors and lifting share prices significantly.

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Updated 1h ago

Cause And Effect

Spending patterns and implications in cloud and AI investments

Percentage of cloud and AI initiatives potentially slowed

10%-15%

Key Facts

Investments in AI confirm ongoing commitment as capital expenditures rose by 52.8%, signaling continued AI investments.
Economic Uncertainty Impact: A reported 10%-15% of cloud and AI initiatives expected to be slowed down.
Slowdown in Cloud Spending could signal fears of recession in corporate America.

Strong Q3 results: Revenue and cloud performance outstrip expectations

Rise in Intelligent Cloud revenue

21%

Intelligent Cloud revenue for Q3

$26.75 billion

Estimate for Intelligent Cloud revenue

$26.16 billion

Key Facts

Q3 Financial Performance: Microsoft reported a quarterly net income of $25.8 billion, with overall revenue at $70.1 billion, surpassing expectations.1
Intelligent Cloud Revenue: The Azure cloud segment achieved a record 33% growth in revenue during Q3.
Cloud Business Boost: The company's Intelligent Cloud business revenue soared to $26.75 billion in Q3, beating estimates.

Background Context

Earnings forecast and cloud revenue expectations

Expected EPS for Q3

$3.21

Expected revenue for Q3

$68.4 billion

Expected cloud revenue for Q3

$42.2 billion

Previous cloud revenue

$35.1 billion

Key Facts

Microsoft's Financial Forecast: Expected to report a revenue of $68.4 billion with EPS of $3.21 for Q3, up from $2.94 last year.
Cloud Revenue Growth for Q3 2024 projected at $42.2 billion, an increase from $35.1 billion in the previous year.

Microsoft reports strong Q3 results, driving cloud growth amidst economic caution

Spending patterns and implications in cloud and AI investments

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Strong Q3 results: Revenue and cloud performance outstrip expectations

Earnings forecast and cloud revenue expectations

Source Citations

Microsoft reports strong Q3 results, driving cloud growth amidst economic caution

Spending patterns and implications in cloud and AI investments

Related Videos

Strong Q3 results: Revenue and cloud performance outstrip expectations

Earnings forecast and cloud revenue expectations

Other Facts in these Reports

Source Citations