Microsoft's AI investments pay off with strong cloud growth

The software and cloud company generated US$18.6 billion in free cash flow, exceeding analyst expectations by US$10 billion.

Microsoft’s Azure cloud computing business grew to US$33.17 billion in the quarter, topping Visible Alpha’s estimate of US$32.84 billion.

The company forecast overall sales of US$96 billion to US$97.1 billion, above estimates of US$95.6 billion, according to LSEG data.