Microsoft Corp (NASDAQ:MSFT) shares surged afterhours as it impressed investors with its fiscal fourth quarter earnings report, with AI successes driving beats on the top and bottom lines.
Revenue was up 18% year-over-year at $76.4 billion, far above Wall Street estimates of $73.8 billion.
This included total Cloud revenue of $46.7 billion, up 27% from the year-ago quarter.
Intelligent Cloud revenue was up 26% at $29.9 billion, attributed to Azure strength.
The More Personal Computing segment showed a 14% revenue increase to $12.6 billion, boosted by the Activision Blizzard acquisition.
Earnings per share surged 24% to $3.65, beating the consensus estimate of $3.37.
Net income rose to $27.2 billion, a 10% increase from the prior year. Operating income was $34.3 billion, up 23%, with gross margins at 68%, slightly down due to increased AI infrastructure costs
“Cloud and AI is the driving force of business transformation across every industry and sector," Microsoft CEO Satya Nadella said in a statement.
“We’re innovating across the tech stack to help customers adapt and grow in this new era, and this year, Azure surpassed $75 billion in revenue, up 34%, driven by growth across all workloads.”
Shares of Microsoft added 6.6% at about $547 afterhours on Wednesday.