Microsoft Q3 Earnings Highlights: Revenue Beat, EPS Beat, CEO Says 'Cloud And AI Are The Essential Inputs'

Technology giant Microsoft Corporation MSFT reported third-quarter financial results after the market close Wednesday.

Here are the key highlights.

What Happened: Microsoft reported third-quarter revenue of $70.07 billion, up 13% year-over-year. The revenue total beat a Street consensus estimate of $68.43 billion according to data from Benzinga Pro.

The company reported quarterly earnings per share of $3.46, beating a Street consensus estimate of $3.22.

Here’s a look at Microsoft’s revenue by reporting segment:

• Productivity and Business Processes: $29.9 billion, +10% year-over-year.
• Intelligent Cloud: $26.8 billion, +21% year-over-year.
• More Personal Computing: $13.4 billion, +6% year-over-year.

Total Microsoft Cloud revenue was $42.4 billion in the quarter, up 20% year-over-year. Chief Financial Officer Amy Hood said the Cloud revenue growth was driven "by continued demand for our differentiated offerings."

The company saw growth across several segments for cloud. Microsoft 365 Commercial cloud revenue was up 12% year-over-year in the quarter. Microsoft 365 Consumer cloud revenue was up 10% year-over-year. Dynamics products and cloud services revenue was up 11% year-over-year. Server products and cloud services revenue was up 22% year-over-year.

Microsoft also said its Azure and other cloud services revenue was up 33% year-over-year.

In the More Personal Computing segment, Xbox content and revenue was up 8% year-over-year with Search and news advertising revenue up 21% year-over-year.

"Cloud and AI are the essential inputs for every business to expand output, reduce costs, and accelerate growth," Microsoft CEO Satya Nadella said. "From AI infra and platforms to apps, we are innovating across the stack to deliver for our customers."

Microsoft will provide forward-looking guidance on its earnings conference call Wednesday, which can be viewed below.

MSFT Price Action: Microsoft stock is up 5.5% to $417.17 year-over-year in after-hours trading Wednesday versus a 52-week trading range of $344.79 to $468.35.

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