Microsoft’s latest quarterly report stunned analysts with a strong $82.9 billion revenue, beating the $81.4 billion expected. Earnings per share also came in higher, at $4.27 versus estimates of $4.06. The driver behind this surge? The company’s AI business, which now runs at an annual revenue rate of $37 billion, doubling compared to last year.
The growth story is closely tied to Azure, Microsoft’s cloud platform, which grew 40% year-over-year. Microsoft Cloud raked in $54.5 billion for the quarter, marking a 29% increase. The whole company’s revenue rose 18% compared to the same period last year, showcasing the power of cloud and AI combined.
One surprising move was a $9.7 billion deal with IREN, a company known for bitcoin mining operations. IREN’s data centers, originally built for crypto mining, are being repurposed to handle AI workloads on Azure. This deal quietly bridges the gap between Microsoft’s cloud ambitions and the cryptocurrency infrastructure, though Microsoft’s disclosures made no mention of holding Bitcoin or launching any blockchain-based financial products.
Looking ahead, Wall Street expects Microsoft will continue this momentum with fiscal Q4 revenue projected at $87.4 billion and earnings per share around $4.23. The company seems set to keep growing in the low double digits.
This content is for informational purposes only and does not constitute financial advice.
