Microsoft's Azure Revenue Surpasses Estimates

Microsoft’s cloud computing business Azure saw a 48% revenue growth to $33.17 billion in the first quarter, surpassing estimates. The company’s free cash flow was $18.6 billion, well above expectations, benefiting from investments in AI infrastructure below projections due to delays from third parties. The strong results show the practical return on Microsoft’s bets on artificial intelligence and high corporate demand, causing the company’s shares to rise about 4%.

The company’s free cash flow also exceeded expectations by about $10 billion in the previous quarter, with investments in AI infrastructure below estimates and revenue growth.

Microsoft’s shares rose about 4% after the market closed, with a year-to-date value increase of about 9%.