Microsoft reported first-quarter revenue of $92.28 billion, surpassing analyst expectations. Earnings per share came in at $4.89, also above estimates.
Growth in the company’s cloud and AI divisions drove the results. Azure growth accelerated to 48%. Revenue from commercial arrangements with OpenAI reached $10 billion for the quarter.
Microsoft forecast second-quarter revenue of $96 billion to $97.1 billion, exceeding consensus estimates. The company cited surging adoption of its Copilot AI tools as support for the outlook.
Microsoft shares rose approximately 2.7% following the announcements. Several major banks raised their price targets for the company.
Separately, Microsoft filed for a ten-series senior note offering. It is the company’s first major debt sale since 2017. Microsoft plans to use the proceeds for capital expenditures, acquisitions and other corporate purposes as it continues investing in AI infrastructure.