The news: Microsoft shares fell as the tech giant beat revenue expectations and reported record quarterly sales, but capital expenditure came in below analyst estimates.<\/p>\n
The company said growth in its Azure cloud business accelerated, offering investors some reassurance that its massive AI bet is beginning to convert into results.<\/p>\n
The numbers: Sales reached a record USD82.9 billion ($116.5 billion), up 18%, with net income of USD31.8 billion, both beating Wall Street expectations cited by The Wall Street Journal. Azure cloud revenue grew 40%, accelerating from 39% the prior quarter.<\/p>\n
Capital expenditure was USD31.9 billion, below analyst expectations of around USD35 billion cited by Bloomberg.<\/p>\n
Shares fell over 2% in after hours trading in New York.<\/p>\n
What they said: CEO Satya Nadella said the company\u2019s AI business had surpassed an annual revenue run rate of USD37 billion, more than doubling year on year.<\/p>\n
\u201cWe are focused on delivering cloud and AI infrastructure and solutions that empower every business to eval-max their outcomes in the agentic computing era,\u201d Nadella said in a statement.<\/p>\n