Microsoft (MSFT) Beats Q1 Estimates as Azure's AI-Driven Cloud Growth Surges Past Expectations

Microsoft Corporation (NASDAQ:MSFT) ranks among the best long-term stocks to buy according to D. E. Shaw. Microsoft Corporation (NASDAQ:MSFT) announced better-than-expected fiscal first-quarter earnings on October 29. The company’s cloud sector beat forecasts, driven by Azure’s robust AI-fueled demand. However, the current quarter’s revenue projection fell short of expectations around the midpoint.

The company’s results exceeded forecasts of $3.66 per share and $75.32 billion, respectively, with Q1 earnings per share of $4.13 on revenue of $77.67 billion.

Microsoft’s cloud division, Azure, surpassed analyst projections of roughly 38% in Q1 by growing 40% over the same period a year ago.

Meanwhile, Microsoft’s Productivity and Business Processes division, which houses LinkedIn and Office productivity software, generated $33 billion in revenue for the first quarter, surpassing analysts’ estimate of $32.33 billion.

In contrast to the consensus of $79.7 billion, Microsoft Corporation (NASDAQ:MSFT) stated on its call that it expects second-quarter revenue of $79.5 billion to $80.6 billion. On a constant currency basis, it expects a 37% increase in Azure revenue during the quarter.

Microsoft Corporation (NASDAQ:MSFT) is a technology company best known for its operating systems and software products.

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Disclosure: None. This article is originally published at Insider Monkey.