Microsoft exceeded quarterly earnings expectations, driven by strong cloud division growth fueled by AI services. Revenue rose 13% to $70.1 billion, and net income increased 18% to $25.8 billion. Cloud computing revenue jumped 20% to $42.4 billion. Despite concerns about slowing AI demand and increased capital expenditure ($21.4 billion this quarter), Microsoft's stock surged 6% in after-hours trading, fueled by Azure's performance and AI potential.

Prepared by Christopher Adams and reviewed by editorial team.