Microsoft Tops Earnings Estimates, Says AI Business Grew 123% Year Over Year

Microsoft reported fiscal Q3 earnings and revenue above estimates and said its artificial intelligence business grew 123% year over year, underscoring strong demand for AI-related products and services.

Summary

Microsoft reported fiscal third-quarter results above analyst expectations, posting earnings per share of $4.27 versus a $4.05 consensus estimate and revenue of $82.90 billion versus an $81.29 billion estimate. The company also said its artificial intelligence business grew 123% year over year, highlighting strong momentum in AI-related operations. Together, the results point to continued demand for Microsoft’s products and services and are closely watched by technology, equity, and digital asset markets for their effect on broader risk sentiment.

Terms & Concepts
  • Earnings per share: A company’s profit divided by its outstanding shares, widely used to measure profitability on a per-share basis.
  • Revenue: The total income a company generates from its business activities before expenses are deducted.
  • Year over year: A performance comparison between the current period and the same period one year earlier, commonly used to measure growth trends.