Microsoft Corp (NASDAQ:MSFT) reported its earnings for the quarter, surpassing expectations on both the earnings per share (EPS) and revenue fronts.
The tech giant announced an EPS of $2.94, outpacing analysts' expectations of $2.84.
Quarterly profit for Microsoft surged by 20%, propelled by robust demand for its AI products.
Additionally, Microsoft reported revenue of $61.9 billion, exceeding the anticipated $60.9 billion.
One of the standout achievements for Microsoft this quarter was its cloud run rate revenues, which soared to approximately $140 billion. Commercial cloud revenue came in at $35.1 billion, ahead of Wall Street estimates of $33.93 billion.
“Microsoft Copilot and Copilot stack are orchestrating a new era of AI transformation, driving better business outcomes across every role and industry," Microsoft CEO Satya Nadella said in a statement.
Gaming revenue surged by 51%, reflecting the strong demand for gaming products and services.
Additionally, Xbox content and services experienced a substantial increase of 62%, while hardware device sales saw a notable uptick of 31%, underscoring the continued popularity of Xbox consoles and accessories among consumers.
Shares of Microsoft popped in afterhours trading, with prices up nearly 4% after the closing bell.