Shares of Microsoft (MSFT) jumped 3.65% in today’s, October 25, early U.S. premarket following stronger-than-expected results in the fiscal Q1. Investors were particularly optimistic on the company's revenue growth, particularly from its Azure cloud segment. Meanwhile, Google Alphabet (GOOG, GOOGL) shares tumbled more than 6% as its cloud business missed analysts' estimates, overshadowing its revenue growth and earnings beat.

Microsoft’s EPS, earnings per share, were $2.99 for the period, compared with expectations of $2.65. Net income rose 27% to $22.29 billion from $17.56 billion, or $2.35 a share, a year earlier. Revenue for the quarter was up nearly 13% to $56.52 billion, compared with $54.5 billion expected and from $50.12 billion in the same period last year.

In terms of guidance, during a conference call with shareholders and analysts, Microsoft’s CFO Amy Hood pointed to fiscal Q2 revenue to be between $60.4 billion and $61.4 billion. This represents a 15% increase from the previous estimate, while consensus estimate expected sales of $60.9 billion.

In terms of MSFT’s operating segments, revenue from Microsoft's Intelligent Cloud reached $24.26 billion, up 19% and above market expectations of $23.49 billion. The division now incorporates Azure public cloud, SQL Server, Windows Server, Visual Studio, Nuance, Enterprise Service, as well as recently acquired GitHub. Azure revenue alone grew 29% in the quarter, beating consensus estimates of 26%. Around 3 percentage points (p.p.) of the quarter’s Azure growth was related to AI, Hood said.