Microsoft pops 9% after earnings beat, on pace for best day in 5 years
2025-05-01T15:28:35Z
Microsoft shares popped after the software giant issued strong guidance, and robust cloud growth drove a top-and-bottom line beat.
Satya Nadella, CEO of Microsoft, speaking on CNBC’s “Squawk Box” outside the World Economic Forum in Davos, Switzerland, on Jan. 22, 2025.
Microsoft shares popped 7.6% Thursday after the software giant issued strong guidance and robust cloud growth drove a top- and bottom-line beat in the third quarter.
Shares notched their best day since November 2022.
Azure revenues topped estimates, growing 33% year over year. Microsoft attributed 16 points of that growth to artificial intelligence. Analysts polled by StreetAccount and CNBC had anticipated 30.3%.
“Clearly, the macro environment remains a wild card, but with Azure back in ‘beat/raise’ mode, we believe that overhang now turns into a tailwind and highlights not only the significant demand for AI services on Azure, but also MSFT’s broad base of infrastructure offerings to support the ongoing migration of enterprise workloads to the cloud,” wrote Evercore ISI’s Kirk Materne.
During its fiscal second-quarter results, Microsoft’s Azure segment showed lighter-than-expected growth and a deceleration from the previous quarter. Microsoft said it anticipates 34% to 35% Azure growth at constant currency in the current period, versus a 31.5% estimate from StreetAccount.
Auto-posted from news source
About The Author
