Microsoft Surges on Strong Azure Growth and Record Commercial Backlog

Microsoft's stock has surged to near $487 after the company released its quarterly earnings. The tech giant beat Wall Street estimates by a wide margin, generating $90 billion in revenue and an 18% increase from last year.

Azure growth was the standout feature of Microsoft's latest quarter, hitting 43% year over year, up from 40% in the previous period and ahead of analyst estimates. Chief Financial Officer Amy Hood noted that the company's biggest problem is not finding customers, but meeting their demand for AI services.

The commercial backlog jumped sharply to $678 billion, an 84% increase from last year's level. This diverse mix of enterprise customers has reduced investor worries about Microsoft relying too heavily on one partner for its AI line of business.