Microsoft reported an ‘exceptional quarter,’ says Citi

Citi analyst Tyler Radke says Microsoft (MSFT) had an “exceptional quarter,” with a four point beat on Azure, better than-expected artificial intelligence demand, continued strong bookings and a strong profitability beat. Non-AI workloads drove the majority of the Azure beat, particularly among large customers, the analyst tells investors in a research note. Citi views Microsoft’s guidance as “promising” saying the company expects demand to outstrip supply for longer than it anticipated. The firm expects the stock to trade up on the Azure growth trajectory and sees positive read-throughs for other consumption names. Citi remains a buyer of Microsoft shares with a Buy rating and $480 price target