Microsoft's third-quarter results showcased impressive earnings, with revenue hitting $70.1 billion and earnings per share at $3.46, outperforming analysts' estimates. The growth stemmed from strong demand for its Cloud services and AI infrastructure, emphasizing the company's strategic focus on innovation across its offerings. Satya Nadella highlighted AI and Cloud as critical to business expansion. Despite its strong position, analysts advised caution, noting potential scrutiny on Microsoft’s capital expenditure amid increasing competition in the AI field, especially as the market is expected to grow significantly in the coming years.
"Bottom-line, capex-heavy models like MSFT and ORCL may face rising investor scrutiny, elevating near-term volatility on downstream policy and tariff implications."
"Cloud and AI are the essential inputs for every business to expand output, reduce costs, and accelerate growth," Satya Nadella said.
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