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Key Takeaways
- Microsoft shares jumped in after-hours trading Thursday after the company announced earnings that beat analysts’ estimates driven by cloud revenue.
- The company’s revenue was $61.9 billion, representing 17% year-over-year, while net income grew 20% from last year to $21.9 billion.
- Microsoft cloud revenue grew 23% year-over-year to $35.1 billion.
- Investors are watching for updates on the company’s artificial intelligence (AI) initiatives and its OpenAI partnership.
Microsoft ( MSFT ) shares rose around 5% in after-hours trading Thursday after the company reported better-than-expected third-quarter earnings driven by its cloud business.
The company’s revenue for the third quarter of fiscal 2024 was $61.9 billion, above analyst expectations and a 17% increase from the year-ago period. That growth came from a 23% year-over-year increase in Microsoft’s cloud revenue to $35.1 billion.
Net income and diluted earnings per share (EPS) were also above analysts’ estimates and grew 20% from a year earlier.
| Q3 FY2024 Actuals | Analyst Estimates for Q3 FY2024 | Q3 FY2023 | |
|---|---|---|---|
| Revenue | $61.9 billion | $60.87 billion | $52.86 billion |
| Diluted Earnings Per Share | $2.94 | $2.83 | $2.45 |
| Net Income | $21.9 billion | $21.1 billion | $18.3 billion |
Microsoft’s partnership with OpenAI gave it a lead on artificial intelligence. Investors and analysts were keeping a close eye on updates about AI tools as well as plans for their monetization.
“Microsoft Copilot and Copilot stack are orchestrating a new era of AI transformation, driving better business outcomes across every role and industry,” said the company’s CEO Satya Nadella wrote in the earnings release.
Microsoft shares were up more than 5% at $420.00 during after-hours trading contributing to the stock’s more than 7% gain year-to-date.