Microsoft's third quarter revenue of $82.9B beats estimates, fueled by 39% constant currency growth in Azure.

Microsoft reported third quarter revenue of $82.9 billion, an increase of 18% year-over-year, and diluted EPS of $4.27, up 23%. Both top and bottom-line results exceeded analyst expectations, driven by continued strength in the company's Cloud and AI segments.

Key Highlights

• Azure and other cloud services revenue growth accelerated to 40% (39% in constant currency), surpassing analyst expectations of 38%.
• The company's AI business surpassed an annual revenue run rate of $37 billion, marking a 123% increase year-over-year.
• Microsoft Cloud revenue reached $54.5 billion, an increase of 29% (25% in constant currency), while the More Personal Computing segment declined 1%.