Microsoft beats on Q1 top and bottom lines on cloud strength

Microsoft (MSFT) reported its fiscal first quarter earnings after the bell on Wednesday, beating on the top and bottom lines on the strength of its cloud business. Microsoft stock was up about 2% in after-hours trading following the release.

Microsoft is one of the biggest beneficiaries of the AI boom, thanks to the billions it has invested in its cloud infrastructure and ChatGPT developer OpenAI. But it’s also facing headwinds, including increasing competition from the likes of Amazon (AMZN), Google parent Alphabet (GOOG, GOOGL), and Salesforce (CRM), which have developed or are developing their own OpenAI rivals.

“AI-driven transformation is changing work, work artifacts, and workflow across every role, function, and business process,” Microsoft CEO Satya Nadella said in a statement.

“We are expanding our opportunity and winning new customers as we help them apply our AI platforms and tools to drive new growth and operating leverage.”

For the quarter, Microsoft saw earnings per share (EPS) of $3.30 on revenue of $65.6 billion. Analysts were expecting EPS of $3.10 and revenue of $64.5 billion, based on analyst consensus estimates compiled by Bloomberg. The company reported EPS of $2.99 on revenue of $56.5 billion during the same quarter last year.

Microsoft’s commercial cloud revenue, which includes cloud services sales, came in at $38.9 billion versus expectations of $38.1 billion. The company’s Intelligent Cloud segment, which includes its Azure business, brought in $24.1 billion in the quarter, up 20% year over year. Microsoft said it saw 12 points of growth from AI services in Azure.

Microsoft also reported Productivity and Business Processes segment revenue of $28.3 billion, a 12% year-over-year increase. The segment includes sales of Microsoft’s Microsoft 365 services.

The company also reported growth in its More Personal Computing business, with revenue climbing 17% to 13.2 billion.

The PC market is in the early innings of a recovery after sales collapsed following the enormous growth around the onset of the pandemic. Microsoft, along with its manufacturing partners, is also pushing a new class of computers known as Copilot+ PCs.

Copilot+ PCs, or laptops with the power to perform on-device AI processes, are the PC industry’s attempt to capitalize on the AI hype story.

Microsoft stock is up some 28% over the last 12 months. And while that’s certainly nothing to shrug off, it’s lower than the broader S&P 500 (^GSPC), which is up 41%. Google parent Alphabet’s stock is up 42%, while Amazon shares are up 49% during the same period.

Sign up for Yahoo Finance's Week in Tech newsletter.

Sign up for Yahoo Finance’s Week in Tech newsletter. (yahoofinance)

Email Daniel Howley at dhowley@yahoofinance.com. Follow him on Twitter at @DanielHowley.

For the latest earnings reports and analysis, earnings whispers and expectations, and company earnings news, click here

Read the latest financial and business news from Yahoo Finance.



Source link

Visited 4 times, 1 visit(s) today

Related Article

Limbach to Announce First Quarter 2026 Results

TAMPA, Fla., April 14, 2026–(BUSINESS WIRE)–Limbach Holdings, Inc. (Nasdaq: LMB) (“Limbach” or the “Company”), a building systems solutions firm that partners with building owners and operators who have mission-critical mechanical, electrical, plumbing and controls, or MEPC, systems, today announced that it will release its first quarter 2026 financial results after the stock market closes on

“I’m a No Go on That One”

SoundHound AI, Inc. (NASDAQ:SOUN) is among Jim Cramer’s recent stock calls as he urged investors to stand by the defense sector. A caller inquired about the stock, and Cramer replied: See, I don’t know, still made no… money. And it was, look, there was a bit of time at one point when NVIDIA had a

GRTX Stock Alert: Halper Sadeh LLC is Investigating Whether Galera Therapeutics, Inc. is Obtaining a Fair Price for its Shareholders

Insiders may stand to receive substantial financial benefits not available to ordinary shareholders.The proposed transaction may contain terms that could limit superior competing offers.Shareholders are encouraged to contact the firm to discuss their rights and options at no cost or obligation. We would handle any matter on a contingent fee basis, whereby you would not be responsible

Stocks continue their peace (hopes) rally, Producer Inflation (PPI) misses! – Dow Jones and US Stock Market Outlook

Elior Manier Market Analyst Elior brings over seven years of experience in financial markets to our analyst team. Since 2018, he has actively engaged in observing, charting, and trading, driven by his passion for mastering market dynamics. With a profound understanding of the geopolitical and macroeconomic forces that shape market movements, Elior focuses on analysing

1 AI Stock That I’ll Buy in the Next Market Correction (Hint: It’s Not Palantir)

The stock market doesn’t move in a straight line. Even during strong bull markets, shorter-term corrections are inevitable. Sentiment turns negative, stocks fall, and even great companies get dragged down with the receding tide. But for long-term investors, those moments are not threats — they are opportunities. The key is preparation. You don’t wait for

This Insurance Stock Has Quietly Crushed the S&P 500 Over 10 Years

Investors don’t normally look to insurance stocks to beat the market. Sure, there are some tech-focused insurance stocks with high-growth potential, but the old insurance giants don’t typically appear on the radar of growth investors. But these value stocks do offer the stability and strength to outlast riskier stocks and beat the market over the

One of Wall Street’s Premier Indicators Just Hit a 74-Year Low — and It Suggests a Big Move in Stocks Is Imminent

Until recently, the stock market appeared unstoppable. The dynamic Dow Jones Industrial Average (^DJI +0.63%), benchmark S&P 500 (^GSPC +1.02%), and artificial intelligence-inspired Nasdaq Composite (^IXIC +1.23%) had all reached record-closing highs since late October. But mounting uncertainties have investors second-guessing the current bull market. Despite a mammoth rally in equities last week, one of

This Bond ETF Could Be the Best Buy for the Next 5-10 Years

It often feels as if investors are facing massive uncertainty and volatility on all fronts. Whether it’s worries about high valuations of tech stocks, a possible artificial intelligence (AI) bubble, or ongoing energy price shocks and disruptions from the Iran War, many investors are looking for a safe place to land. The past 16 years

Middle East Investment Opportunities Featuring 3 Promising Small Caps

As major Gulf markets climb, buoyed by optimism surrounding U.S.-Iran negotiations, investors are increasingly looking towards the Middle East for promising opportunities. In this dynamic environment, identifying small-cap stocks with strong fundamentals and growth potential can offer compelling investment prospects. Name Debt To Equity Revenue Growth Earnings Growth Health Rating Al Wathba National Insurance Company

South Korean ETF issuers in space race to ride SpaceX IPO buzz

South Korean asset managers are rushing to launch new exchange-traded funds tied to both established and emerging space technology companies, seeking to capture investor enthusiasm ahead of SpaceX’s anticipated initial public offering in June. Analysts caution, though, that any rally after the listing may not fully lift the funds if their exposure to SpaceX is

3 UK Stocks That May Be Priced Below Their Estimated Value

The United Kingdom’s stock market has recently faced challenges, with the FTSE 100 index experiencing a decline due to weak trade data from China, highlighting concerns over global economic recovery. In such an environment, identifying stocks that may be undervalued becomes crucial for investors looking to capitalize on potential opportunities amidst broader market uncertainties. Name

Asian stocks gain and oil falls on hopes of renewed US-Iran talks

{‘ap_id’: ‘9690717f561076a0909f7a5e820f02d6’, ‘byline’: ‘By CHAN HO-HIM’, ‘ap_version’: 0, ‘apProducts’: [{‘product_id’: 42428, ‘station’: ‘kdkaradio’, ‘section_front’: ‘news/business’, ‘name’: ‘AP Top News – Business – Stories’}, {‘product_id’: 42428, ‘station’: ‘wccoradio’, ‘section_front’: ‘news/business’, ‘name’: ‘AP Top News – Business – Stories’}, {‘product_id’: 42428, ‘station’: ‘kmox’, ‘section_front’: ‘news/business’, ‘name’: ‘AP Top News – Business – Stories’}, {‘product_id’: 42428, ‘station’: ‘kywnewsradio’,

3 Middle Eastern Dividend Stocks Yielding Up To 7.5%

The Middle Eastern stock markets have recently experienced mixed performances, influenced by geopolitical tensions such as the failed U.S.-Iran peace talks and subsequent maritime blockade. Despite these challenges, opportunities for investors remain, particularly in dividend stocks that can offer attractive yields even amidst market volatility. Name Dividend Yield Dividend Rating Yeni Gimat Gayrimenkul Yatirim Ortakligi

Why Palantir Stock Gained Today

Palantir (NASDAQ: PLTR) stock posted significant gains in Monday’s trading. The tech specialist’s share price ended the day’s trading up 3.3%. The S&P 500 index’s level climbed 1% in the same daily session and the Nasdaq Composite index’s level closed out the day’s trading up 1.2%. The artificial intelligence (AI) software company’s share price had

Wall Street Is Calling a Bottom on the Iran War Cycle. Is It Time To Buy?

On a day when President Trump announced a blockade of the Strait of Hormuz in response to failed negotiations for a peace agreement, stocks surprisingly charged higher with the S&P 500 (SNPINDEX: ^GSPC) gaining 1%. Investors seemed to shake off the threat around the blockade and the ongoing saber-rattling between the two countries, and stocks

Huagong Tech submits listing application to Hong Kong Stock Exchange

End-of-day quote Shenzhen S.E. 2026-04-13 5-day change 1st Jan Change 125.16 CNY +7.97% +20.88% +57.77% Published on 04/13/2026 at 08:54 pm EDT Reuters This article is reserved for members Unlock the article: REGISTER NOW! © Reuters – 2026 DurationAuto.2 months3 months6 months9 months1 year2 years5 years10 yearsMax. PeriodDayWeek Huagong Tech Co., Ltd. specializes in the

0
Would love your thoughts, please comment.x
()
x