Microsoft reported better-than-expected third-quarter earnings on Wednesday, which caused the company’s stock to soar by more than 8% in after-hours trading.
Microsoft reported $3.46 in earnings per share, marking an 18% year-over-year increase, compared to an estimated $3.22. Its revenue jumped by 13% compared to the same period last year and came to $70.07 billion while Wall Street analysts expected $68.42 billion.
The company mostly benefited from the strong performance of its cloud business, which saw a 20% year-over-year increase. The revenue associated with its cloud computing platform Azure grew by 33%, with AI contributing 16 points to the growth. Analysts expected Azure’s revenue to jump by around 30% and AI to contribute 15.6 points of growth.
“We delivered a strong quarter with Microsoft Cloud revenue of $42.4 billion, up 20% (up 22% in constant currency) year-over-year driven by continued demand for our differentiated offerings,” Microsoft executive vice president and CFO Amy Hood shared in a statement.
Microsoft stock closed at $395.26 per share on Wednesday, being 5.57% down year-to-date. The stock then took off in the after-hours, reaching $429.60 per share at one point.
Several other tech stocks rose in the aftermath. Shares of chipmaker Nvidia jumped by 4%, Amazon’s stock rose by 3.08%, and shares of Meta Platforms jumped by 4.2%.