Microsoft Corp (NASDAQ:MSFT) is tipped to rally when US markets open later today.
The Redmont tech titan surpassed expectations on both the earnings per share (EPS) and revenue fronts in the first quarter.
It announced EPS of $2.94, outpacing analysts' expectations of $2.84 and revenue of $61.9 billion, exceeding the anticipated $60.9 billion.
Quarterly profit for Microsoft surged by 20%, propelled by robust demand for its AI products.
“Microsoft Copilot and Copilot stack are orchestrating a new era of AI transformation, driving better business outcomes across every role and industry," chief executive Satya Nadella said in a statement.
Gaming revenue also flew higher by more than half.
Xbox content and services experienced a substantial increase of 62%, while hardware device sales saw a 31% uptick.
The stock added 4.3% in the post market, meaning its valuation should reclaim $3 trillion when markets open this Friday.