Microsoft Earnings: EPS of $4.89 Beats the $4.72 Estimate as Revenue of $92.2 Billion Tops Forecasts

Microsoft delivered a clean beat, and the stock jumped more than 5% in extended trading.

Microsoft reported earnings per share of $4.89, beating the $4.72 estimate, and revenue of $92.28 billion, beating the roughly $90.7 billion forecast.

Total revenue rose 19% year over year for the quarter ended September 30.

Azure Accelerated, Spending Did Not

Azure revenue grew 48% year over year to $33.17 billion, accelerating from 42% growth in the previous quarter and topping what analysts expected.

Just as important for the stock, the AI bill came in lighter than feared: capital expenditures and finance leases totaled $45.2 billion, well below the roughly $50.7 billion analysts had projected.

Delivering faster Azure growth on lower than expected spending strengthens the return-on-investment case for Microsoft's AI build-out, the central debate around the stock all year.

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What It Means for the Options Market

A beat with accelerating cloud growth and disciplined capex is the combination bulls wanted, and it sets a high bar for the rest of the hyperscalers.

Watch MSFT for follow-through at the open, AI infrastructure names like NVDA on the Azure demand signal, and ORCL after its own investor day guidance the same day.

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