Microsoft says AI will drive revenue growth; sees Q4 commercial bookings 'relatively flat'
On heels of a solid quarterly print, Microsoft's (NASDAQ:MSFT) stock is jumping up +8.5% in the after-hours session on Tuesday.
In Q3, Microsoft's revenue grew at 7% Y/Y, and management's outlook for Q4 FY2023 calls for Y/Y growth of 5.7-7.6%.
In company's earning call, Microsoft finance chief Amy Hood says FX to cut Q4 revenue growth by 2%. Further sees Q4: Intelligent Cloud revenue $23.6B-$23.9B; More Personal Computing revenue $13.35B-$13.75B; Productivity and Business Processes revenue $17.9B-$18.2B.

It expects COGS to grow 3%-4% and expects to scale up CapEx in FY24 for AI and says FY24 OpEx growth 'will remain low'.
Also, it excepts Q4 commercial bookings 'relatively flat'.
Prior to Microsoft's (MSFT) results, reports came out saying that the company is planning to close its $69B acquisition of Activision (ATVI) despite an FTC lawsuit against the deal.
Nadella's and Hood's comments came as Microsoft (MSFT) shares rose almost 9% in after-hours trading following what was a better-than-expected fiscal third-quarter earnings report.
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