Microsoft Smashes Q3 Earnings Estimates with Record-AI Growth

Microsoft's fiscal Q3 earnings report has exceeded expectations, with revenue reaching $82.9 billion and earnings per share at $4.27. This beats the consensus estimates of $81.4 billion in revenue and $4.06 EPS.

The company's AI business has reached an impressive annual run rate of $37 billion, a 123% year-over-year increase.

Azure, Microsoft's cloud computing platform, saw a 40% year-over-year growth, contributing to the overall Microsoft Cloud revenue of $54.5 billion for the quarter, up 29% from last year.

The company has also signed a significant deal with IREN, a bitcoin miner, worth $9.7 billion to repurpose its data center infrastructure for AI workloads on Azure.