Microsoft ($MSFT(MSFT)) reported earnings per share (EPS) of $2.94 on revenue of $61.9 billion, surpassing Wall Street's expectations of $2.83 EPS on revenue of $60.88 billion. The company's cloud business stood out with revenue of $35.1 billion, exceeding estimates of $33.93 billion.

Microsoft's Q3 earnings report beat both top and bottom lines, with EPS of $2.94 on revenue of $61.9 billion, surpassing the expected EPS of $2.83 on revenue of $60.88 billion. The company's cloud business was a significant driver of growth, with revenue of $35.1 billion, exceeding estimates of $33.93 billion.
Microsoft's shares jumped 5% following the announcement, reflecting investor confidence in the company's performance and its ability to capitalize on the growing demand for cloud services. The company's AI capabilities contributed 6 percentage points of growth to Azure revenue, up from 3% in the previous period.
Overall, Microsoft's strong Q3 results position the company well in the ongoing competition to offer the most comprehensive AI solutions to enterprise customers. The company's strategic investments in third-party firms like OpenAI and Anthropic, as well as its internal team reorganization, demonstrate its commitment to staying at the forefront of AI innovation.