MSFT: Microsoft Stock Pumps 5% on Earnings Showing Strong AI-Fueled Revenue Growth

Software giant said that in its fiscal third quarter AI demand outpaced available capacity. Revenue came in at $61.9 billion.

• Microsoft stock MSFT received a fresh boost in after-hours deals Thursday, following the company’s fiscal third-quarter earnings report. Microsoft said it picked up revenue $61.9 billion, just under its record high notched in the previous quarter. The software mainstay earned $2.94 a share, topping consensus calls for $2.82 a pop. Shares are up roughly 5% ahead of today’s opening bell, on track to erase Thursday’s 2.5% loss.
• Revenue growth of 17% boosted investors’ confidence in the AI wave sweeping tech companies. “Currently, near-term AI demand is a bit higher than our available capacity,” Microsoft’s finance chief Amy Hood said. The company has been betting heavily on Nvidia’s AI-enabled servers for building out its artificial intelligence infrastructure and integrating AI models across its products.
• For the quarter, Microsoft’s capital expenditures totaled $14 billion, mainly focused on supporting “demand in our cloud and AI offerings,” the company said. Shares of Microsoft have seen modest growth of just about 7% this year with market capitalization floating around the $3 trillion mark. In other words, this is the world’s most expensive company, followed by Apple AAPL, valued at $2.63 trillion.