Microsoft Azure revenue reached $33.17 billions in the first fiscal quarter, exceeding expectations

Microsoft (MSFT.US) reported quarterly cloud business revenue on Wednesday that exceeded expectations, indicating that the company’s massive investments in artificial intelligence are beginning to pay off as Wall Street grows increasingly cautious about big tech firms relying on debt financing and continuing to ramp up spending. In the first fiscal quarter ending September, Microsoft Azure cloud computing business revenue grew by 48% to $33.17 billion, surpassing the market expectation of $32.84 billion. Capital expenditure for the quarter was $45.2 billion, up from $34.9 billion in the same period last year. Microsoft’s previous forecast for first fiscal quarter capital expenditure was $50 billion. The company reported free cash flow of $18.6 billion, while the market previously expected $8.54 billion. Among hyperscale cloud service providers, Microsoft is also the only company expected to maintain positive cash flow next year. Microsoft (MSFT.US) shares rose by nearly 6% in after-hours US trading.