Microsoft shares up 8.3% as AI features give a boost to sales

Microsoft Corp beat Wall Street's quarterly revenue and profit estimates on Tuesday, driven by growth in its cloud computing and Office productivity software businesses, and the company said artificial intelligence products were stimulating sales. The company forecast that revenue in its main segments for the current quarter would match or top Wall Street targets. Shares gained 8.3% in after-market trading following a report by the Redmond, Washington-based technology company that profits were $2.45 a share in the fiscal third quarter, beating Wall Street estimates of $2.23, according to data from Refinitiv and up 10% from the same quarter last year. In regular trading, fears about earnings had sent Microsoft down 2.2%, making it the biggest drag on the S&P 500 on Tuesday ahead of its report. Revenue rose 7% to $52.9bn in the quarter ended March, inching past the average analyst estimate of $51.02bn, according to Refinitiv.