By Todd Bishop
Publication Date: 2026-04-29 20:19:00
Microsoft’s Azure cloud business accelerated in the March quarter, growing 40% and topping the company’s own forecast, giving the tech giant a new answer to questions about its ability to translate record capital spending on AI infrastructure into stronger financial results.
The company’s revenue rose 18% to $82.9 billion, beating the $81.4 billion analyst consensus, and earnings per share jumped 23% to $4.27, above the $4.06 expected by Wall Street.
In its earnings news release, Microsoft also disclosed that its AI business has reached an annual revenue run rate of $37 billion, up 123% from a year ago. It’s the first time the company has updated the figure since it reported a $13 billion run rate in January 2025.
Capital spending came down to $30.9 billion from $37.5 billion the previous…