Why Microsoft Stock Popped This Week

Core Viewpoint - Microsoft reported better-than-expected revenue and earnings for its fiscal third quarter, leading to a significant increase in its stock price, driven by strong performance in its Azure cloud services and Microsoft 365 products [1][2][3]. Financial Performance - Microsoft's total sales increased by 13% year-over-year to $70 billion, surpassing Wall Street's consensus estimate of $68.4 billion [3]. - Earnings per share reached $3.46, exceeding estimates of $3.22, marking an 18% year-over-year increase [3]. - Revenue from Azure and other cloud services surged by 33% compared to the same quarter last year [3]. Segment Performance - Microsoft 365 software sales showed robust growth, with commercial sales rising by 11% and consumer sales increasing by 12% [4]. Future Outlook - The company anticipates Azure revenue to grow by 34% in the fourth quarter, contributing to an expected total revenue increase of 14% year-over-year [5]. - Positive management comments have alleviated investor concerns regarding potential economic slowdowns, with the CEO emphasizing the adaptability of software in challenging economic conditions [6][7].