Microsoft shares popped more than five percent Wednesday afternoon after it reported better than expected revenue and profit, fueled by its Azure cloud computing division.
The technology giant recorded $92.3 billion in total revenue and more than $36.6 billion in profit for the September quarter, the company said in a securities filing Wednesday. Analysts had expected around $90.6 billion in revenue and $35.1 billion in profit, according to FactSet.
Azure grew by 48 percent during the quarter, driving the beat. Google on Wednesday also reported that its cloud division doubled to $30.7 billion during the quarter, bringing it closer to Microsoft’s Azure revenue of $33.2 billion.”We are delivering greater capability, choice, control, and cost efficiency for customers across our entire stack,” Microsoft CEO Satya Nadella said in a statement.
The quarterly earnings report comes just days after Microsoft offered voluntary exit packages to about 60,000 staff, roughly a quarter of its workforce, as the tech giant spends heavily on artificial intelligence. It is the second voluntary buyout this year after giving seven percent of its US workforce the option to retire early in April.
Microsoft had 223,000 employees globally at the end of June, down from 228,000 at the end of 2025, according to regulatory filings.
One of the big questions looming over tech earnings is whether the industry’s heavy AI spending is paying off. Analysts are expecting $51 billion in overall spending by Microsoft from July to September. The company nearly doubled its spending on “property and equipment” to $39 billion compared to the same period last year.
Microsoft will hold a call with analysts on Wednesday afternoon to discuss its results.
