05:55 AM EDT, 10/31/2024 (MT Newswires) -- (Updates with stock move and analyst comments in the headline and the last three paragraphs.)

Microsoft ( MSFT ) reported fiscal Q1 earnings late Wednesday of $3.30 per diluted share, up from $2.99 a year earlier.

Analysts polled by Capital IQ expected $3.11.

Revenue for the quarter that ended Sept. 30 was $65.59 billion, up from $56.52 billion a year earlier.

Analysts surveyed by Capital IQ expected $64.56 billion.

Azure revenue grew 34%, slightly above the company's expectations of 33%, according to a note from Truist Securities early Thursday. "However, management noted the better-than-expected result was due to the small benefit from in-period revenue recognition."

Azure growth included roughly 12 points from AI services, similar to last quarter, as per the Truist research note. Demand continues to be higher than available capacity at the company, which expects a "re-acceleration" in H2, 2025, as capital investments will increase the available AI capacity to serve more of the growing demand.

Microsoft ( MSFT ) shares were 3.8% lower in premarket activity Thursday.

Price: 416.41, Change: -16.12, Percent Change: -3.73