Microsoft Q3 Highlights: AI Revenue Up 123% YoY, Hits Annual Run Rate $37 Billion, Helps With Double Beat

Benzinga04-30

Microsoft Corporation (NASDAQ:MSFT) announced third-quarter financial results on Wednesday after market close.

Here are the key highlights.

Microsoft Q3 Earnings

Microsoft reported third-quarter revenue of $82.9 billion, up 18% year-over-year. The revenue total beat a Street consensus estimate of $81.39 billion according to data from Benzinga Pro.

The company reported quarterly earnings of $4.27 per share, beating a Street consensus estimate of $4.06 per share.

Here’s a look at Microsoft’s revenue by reporting segment:

  • Productivity and Business Processes: $35.0 billion, +17% year-over-year
  • Intelligent Cloud: $34.7 billion, +30% year-over-year
  • More Personal Computing: $13.2 billion, -1% year-over-year

Overall Microsoft Cloud revenue was $54.5 billion, up 29% year-over-year. The company said its commercial remaining performance obligation was $627 billion at the end of the quarter, up 99% year-over-year.

Azure and other cloud services revenue was up 40% year-over-year in the quarter.

"We are focused on delivering cloud and AI infrastructure and solutions that empower every business to eval-max their outcomes in the agentic computing era," Microsoft CEO Satya Nadella said. "Our AI business surpassed an annual revenue run rate of $37 billion, up 123% year-over-year.”

What's Next For Microsoft

The company said it will provide forward guidance on its conference call, which can be watched below.

Microsoft Stock Price Action

Microsoft stock is down 1.3% to $418.88 in after-hours trading Wednesday versus a 52-week trading range of $356.28 to $555.45.

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