Microsoft stock surges on strong quarter, record cloud revenue

What's down the move: The bundle and unreality elephantine reported 4th fourth net connected Wednesday that bushed Wall Street's estimates connected the apical and bottommost lines arsenic its Azure work topped $100 cardinal successful gross for the archetypal time.

Microsoft said it spent $41 cardinal connected superior expenditures, including leases, successful the quarter, beneath the anticipated $42 billion.

The company's Intelligent Cloud conception saw gross of $39.3 cardinal versus expectations of $38.1 billion.

What other you request to know: Microsoft, similar overmuch of the tech industry, has been beset by concerns astir assertive superior expenditures and their interaction connected the company's escaped currency flow, arsenic good arsenic whether those investments are paying disconnected successful presumption of improved revenue.

Investors look relieved that superior expenditures came successful beneath expectations, and its plans for 2026 were unchanged.

Last week, Google genitor Alphabet (GOOG, GOOGL) said it plans to walk betwixt $195 cardinal and $205 cardinal connected capex for the year, up from its anterior estimation of $180 cardinal to $190 cardinal and good up of analysts' expectations of $186.4 billion. That sent Alphabet banal tumbling much than 6% connected the day.

Microsoft banal is down 19% twelvemonth to date.

Ines Ferre is simply a elder concern newsman for Yahoo Finance. Follow her connected X astatine @ines_ferre.

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