Investing.com -- Microsoft reported Wednesday fiscal first-quarter results that topped Wall Street estimates, underpinned by growing contribution from the tech giant's AI services.
Microsoft Corporation (NASDAQ:MSFT) was 0.7% in recent afterhours trading Wednesday.
The company reported Q1 earnings per share of $3.3 on revenue of $40.59 billion. Analysts polled by Investing.com anticipated EPS of $5.21 on revenue of $40.18B.
The beat was supported by growing contribution to growth from the tech giant's artificial intelligence related offerings.
Azure, Microsoft's cloud business grew 33%, just above analyst estimates of around 32%.
Growth in Azure benefiting from 12 points of contribution from AI services (vs. 11-points last quarter), equating to ~$1.5B in quarterly revenue (by our estimate)," RBC said in a Wednesday note..
Fully burdened CapEx came in high, at $20.0B, RBC said, adding that it was a factor likely weighing on the stock during after-hours trading.