Shares surged 7.6 per cent, the biggest jump since November 2022, after a juicy set of quarterly numbers and guidance that didn’t scream “macro doom.”

Azure revenues leapt 33 per cent year-on-year, beating the 30.3 per cent that analysts expected. Vole reckons nearly half that growth—16 points—was fuelled by artificial intelligence, proving yet again that AI is the sugar high the markets can't quit.

Evercore ISI, senior analyst, Kirk Materne said: “Clearly, the macro environment remains a wild card, but with Azure back in ‘beat/raise’ mode, we believe that overhang now turns into a tailwind.” He added that demand for Azure’s AI services and broader cloud plumbing had reasserted Microsoft's spot in the enterprise land grab.

It was a much-needed rebound. In the previous quarter, Azure had wheezed through with weaker growth. This time, Vole said it expects Azure to grow 34 to 35 per cent in constant currency next quarter, comfortably ahead of the 31.5 per cent scribbled down by StreetAccount’s spreadsheet jockeys.

Total revenue hit $70.07 billion for the fiscal third quarter ending 31 March, up 13 per cent on the year and ahead of the $68.42 billion forecast. Net income jumped 18 per cent to $25.8 billion, or $2.94 per share, up from $21.9 billion.

The forecast for the current quarter is just as smug—Microsoft’s calling for $73.15 billion to $74.25 billion in revenue, handily topping the $72.26 billion consensus guess. Investors exhaled, especially those panicking over what Donald Trump’s tariff theatrics might do to the sector.

Microsoft confirmed it’s still flinging cash at its AI infrastructure buildout. Capex (excluding finance leases) soared 53 per cent to $16.75 billion, just ahead of the $16.37 billion predicted.

Morgan Stanley, equity analyst, Keith Weiss summed it up: “Bottom-line, while the macro presents uncertainty, Microsoft appears poised to yield on GenAI investments which should support share gains and more durable growth ahead,” he said.

Financial results at a glance
For Microsoft’s fiscal Q3 ending 31 March 2025:

• Revenue: $70.07 billion (up 13 per cent year-on-year)
• Net income: $25.8 billion (up 18 per cent)
• Earnings per share: $2.94
• Azure revenue growth: 33 per cent (16 points attributed to AI)
• Forecast for Q4 revenue: $73.15 billion to $74.25 billion
• Azure growth forecast (constant currency): 34 to 35 per cent
• Capital expenditures (excluding finance leases): $16.75 billion (up 53 per cent)