![]A view shows the Microsoft logo on the day of the Hannover Messe, one of the world's largest industrial trade fairs, in Hanover, Germany, March 31, 2025](https://theworldstandard.org/wp-content/uploads/2025/04/microsoft.avif)
On April 30, 2025, Microsoft reported stronger-than-expected earnings for the third quarter, propelled by robust growth in its Azure cloud services and strategic investments in artificial intelligence (AI). Azure’s revenue surged by 33% year-over-year, surpassing analyst expectations of 29.7%. Notably, AI initiatives contributed 16 percentage points to Azure’s growth, up from 13 points in the previous quarter.
The company’s overall revenue reached $70.1 billion, exceeding the anticipated $68.42 billion, while earnings per share stood at $3.46, beating forecasts of $3.22. Microsoft’s Intelligent Cloud unit generated $26.8 billion, reflecting the growing demand for cloud-based solutions. Commercial bookings saw an 18% increase, bolstered by a new Azure contract with OpenAI, the creator of ChatGPT.
In response to the positive earnings report, Microsoft’s shares rose nearly 6% in after-hours trading. This uptick also had a ripple effect on other AI-related stocks, with companies like Meta, Nvidia, and Amazon experiencing gains.
Despite the strong performance, Microsoft acknowledged constraints in AI capacity and announced plans to invest $80 billion in data center expansion within the fiscal year. Capital expenditures increased by nearly 53% to $21.4 billion, indicating a strategic shift toward shorter-lived assets such as chips.
Source: Reuters
