Key Highlights

Microsoft Earnings Beat Estimates, Driven by Cloud and AI Growth

Key Highlights

* Microsoft Corp. (MSFT) reported fiscal third-quarter results after the close of trading Thursday. * Quarterly sales and profit climbed more than projected, boosted by corporate demand for the company's cloud and artificial intelligence offerings. * The company reported fiscal second-quarter adjusted earnings per share of 2.77, exceeding analyst estimates of 2.32 for the year-earlier period.

Details

Microsoft's strong performance reflects continued demand for its Azure cloud computing services, which have benefited from the rise in remote work and online services during the pandemic. The company's AI-powered products, such as its conversational AI assistant Cortana and its image recognition platform Azure Cognitive Services, have also gained traction with businesses.

Microsoft's earnings beat has fueled optimism among investors, with several analysts adjusting their price targets for the company's shares. Bank of America upgraded its price target for MSFT to $480 from $450.

The company's strong financial performance comes amid a challenging environment for the tech industry. Economic uncertainty and geopolitical tensions have weighed on the stock market, with many tech companies experiencing sharp declines in their share prices. Microsoft's resilience in the face of these headwinds is a testament to the strength of its business model and its ability to navigate market volatility.