MSFT was up $13.99 (2.63%) at $545.00 in late aftermarket action. The overnight trade should be interesting.
From Seattle's own, GeekWire (also serving Redmond), October 28. First up:
Microsoft Azure revenue surges 48% to $33.2B, beating expectations as cloud and AI demand grows
Microsoft’s Azure cloud business brought in $33.2 billion in revenue in the September quarter, up 48% from a year earlier, blowing past the company’s own forecast and beating Wall Street’s expectations.
The growth suggests that Microsoft is selling cloud and AI computing about as fast as it can install it. Azure revenue rose $10.8 billion from a year earlier, driven by demand for services across the platform, Microsoft said in its quarterly filing. That came even as some new data center capacity arrived late.
For investors worried about Microsoft’s record capital spending, it’s a sign that the company’s massive AI and cloud infrastructure buildout is turning into sales. Microsoft’s shares rose nearly 4% in after-hours trading following the earnings report.
Overall, Microsoft reported revenue of $92.3 billion for the first quarter of its 2027 fiscal year, up 19% and above the $90.75 billion analysts expected, according to Yahoo Finance. Earnings were $4.89 per share excluding the impact of its OpenAI investment, compared with expectations of $4.72.
It’s the first time Microsoft has reported Azure’s quarterly revenue figure, not just its growth. The disclosure is part of a new financial structure that took effect this quarter, splitting the company into two segments: Agents and Infra, and Devices and Consumer....
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That was followed by:
Bigger than Bing or Xbox: Microsoft’s OpenAI haul reaches $10B in quarterly revenue
OpenAI generated $10 billion in revenue for Microsoft in the quarter ended Sept. 30, about 11% of the Redmond company’s total revenue, according to its quarterly filing Wednesday.
The amount is up sharply. In the fiscal year that ended in June, Microsoft recorded $24.1 billion in revenue from its business with OpenAI, or about $6 billion a quarter on average.
That $10 billion surpasses some of Microsoft’s longest-running businesses. Xbox brought in $5.4 billion in the quarter. Search and advertising, which includes its Bing search engine, generated $6.6 billion. Windows licenses sold through PC makers, along with Surface and other Microsoft devices, brought in $3.6 billion.
The total covers revenue-sharing payments from OpenAI, as well as other business between the companies, such as OpenAI’s use of Azure to train and run its AI models. Microsoft didn’t say how much came from each, or how much of Azure’s growth came from OpenAI.
Azure revenue rose 48% to $33.2 billion in the quarter, beating Wall Street’s expectations and the company’s own forecast of 44% to 45% growth.
Microsoft has begun disclosing its revenue from OpenAI because its stake of about 24% makes OpenAI a “related party” under accounting rules, requiring it to report the business they do with each other.
Microsoft first reported the number in its annual report in July, as a full-year total. This is the first time it has given a quarterly figure.
The original AI alliance: Microsoft first invested in OpenAI in 2019, eventually committing $13 billion, and became its exclusive cloud provider. ChatGPT ran on Azure when it launched in late 2022....
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The uptick in MSFT is not nearly enough to overcome the whack that GOOG and GOOGL are taking on Alphabet's advertising shortfall. Them being down around 9% each has the Nasdaq 100 futures down about 1%,
