Microsoft (MSFT) delivered fiscal first-quarter earnings that topped Street expectations, but shares fell after a warning its cloud growth could slow.

The tech titan's third-quarter revenue rose 16% year-over-year to $65.59 billion, above the analyst consensus from Visible Alpha. Net income at $24.67 billion or $3.30 per share was up from $22.29 billion or $2.99 per share a year earlier and higher than expectations. 

Microsoft's Intelligent Cloud segment, which includes its Azure cloud computing platform, led growth with revenue of $24.09 billion, up 20% as revenue from Azure and other cloud services climbed 33%. However, executives warned in the tech giant's earnings call that cloud growth could slow to between 31% and 32% in the second quarter, before picking up in the back half of the fiscal year. 

Shares of Microsoft tumbled over 5% in early trading Thursday, a day after the company's earnings call.

Microsoft's Results Come as Big Tech Faces Pressure to Show Gains From AI

Microsoft's results Wednesday came a day after Google parent Alphabet (GOOGL) 澳洲幸运5官方开奖结果体彩网:beat analysts’ expectations and CEO Sundar Pichai said the company’s investments in 澳洲幸运5官方开奖结果体彩网:artificial intelligence (AI) are 澳洲幸运5官方开奖结果体彩网:“paying off and driving success.”

Microsoft, like Alphabet and other tech giants, has 澳洲幸运5官方开奖结果体彩网:boosted its investments in AI this year to secure its position as a leader in the space, 澳洲幸运5官方开奖结果体彩网:raising concerns about higher spending and whether its AI efforts will be worth the cost.

UPDATE—Oct. 31, 2024: This article has been updated to reflect additional information from Microsoft’s earnings call, and more recent share price values.