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Microsoftbeat Wall Street estimates for third-quarter revenue and profit on Thursday, driven by gains from adoption of artificial intelligence across its cloud services, and the company’s shares jumped more than 4% in extended trade.

Executives forecast ranges for current quarter cloud revenue that were mostly above Wall Street targets.

The rise inMicrosoftshares after the bell lifted the company’s stock market value by $128 billion as profit and revenue growth overshadowed its higher-than-expected capital expenditures. In contrast, Facebook and Instagram parent Meta’s market capitalization fell by $200 billion on Wednesday after it warned of rising AI expenses and issued a lower-than-anticipatedrevenue forecast.

“Microsofts AI-powered earnings demonstrate that doubling down on innovation is paying off,” said Jeremy Goldman, senior director of briefings at Emarketer, pointing to the company’s early moves in generative AI, such as its large investment in ChatGPT maker OpenAI.

Microsoft revenue rose 17% to $61.9 billion in the quarter ended March, exceeding the consensus estimate of $60.80 billion, according to LSEG data. Earnings per share of $2.94 topped Wall Street’s target of $2.82.

At the same time, Microsoft’s AI-driven capital expenditures in the third quarter were nearly $1 billion more than analysts’ estimates. Capital expenditures grew from $11.5 billion in the previous quarter to $14 billion, passing estimates of $13.14 billion, according to Visible Alpha.

“We’re continuing to see customer demand grow quite a bit,” Brett Iversen, Microsoft’s vice president of investor relations told Reuters. “And so we’re making sure to scale our available capacity in line with that.”

The stock has soared onMicrosoftshipping generative AI (genAI) tools based on its strategic partnership with OpenAI and also helped it capture the world’s most valuable company crown from Applethis year.Microsofthas special access to OpenAI’s coveted AI technologies, which it has been working to infuse across its product portfolio, such as in Azure, Bing and alsoMicrosoft365, which includes Word, Excel, and Powerpoint.

Revenue from Microsoft’s Intelligent Cloud unit, which houses the Azure cloud computing platform, rose to $26.7 billion, passing the average estimate of $26.24 billion, LSEG data showed.

It forecast fourth quarter intelligent cloud revenue of $28.4-28.7 billion, mostly ahead of Wall Street targets of $28.47 billion.

Azure revenue rose 31%, higher than a 29% growth estimate from market research firm Visible Alpha. Microsoft forecast Azure growth in the fiscal fourth quarter would be 30%-31%, which would put it ahead of the 28.5% Wall Street target.

Microsoft does not break out the absolute revenue figure for Azure, the part of its business best situated to capitalize on booming interest in artificial intelligence.

The Copilot tool, a set of genAI assistants launched in November for $30 a month, has lifted Microsoft’s enterprise software and Windows businesses. A recovery in personal computer sales was also a factor.

The More Personal Computing unit revenue increased 17% to $15.6 billion, surpassing analyst expectations of $15.08 billion, according to data from LSEG.

Productivity and Business Processes,Microsoft’s unit that houses office software and LinkedIn, increased revenue 12% to $19.6 billion. Analysts had estimated $19.54 billion, according to data from LSEG.

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Rays reinstate OF Lowe from the 10-day IL

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Rays reinstate OF Lowe from the 10-day IL

ST. PETERSBURG, Fla. — The Tampa Bay Rays reinstated outfielder Josh Lowe from the 10-day injured list before Monday night’s game with the Chicago White Sox.

Lowe has been out since opening day due to a right oblique strain that occurred during spring training, and experienced right hamstring tightness in late April just before he was expected to rejoin the team.

Lowe hit .292 with 20 homers, 83 RBI and stole 32 bases last season.

Right-hander Edwin Uceta had his contract selected from Triple-A Durham, where he was 0-1 with a 7.00 ERA in 10 games. Uceta appeared in 25 games, going 0-3, in 2021-23 with the Los Angeles Dodgers, Arizona Diamondbacks and New York Mets.

Tampa Bay used six relievers in Sunday’s 7-6, 10-inning win over the Mets after starter Ryan Pepiot was hit by a 107.5 mph liner on his left calf and exited the game.

X-rays taken Sunday on Pepiot were negative.

To make room on the 26-man roster, infielder Curtis Mead and reliever Jacob Lopez were optioned to Durham.

Infielder-outfielder Niko Goodrum was designated for release or assignment.

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Guardians’ hits leader Kwan on IL, Manzardo up

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Guardians' hits leader Kwan on IL, Manzardo up

CLEVELAND — The Guardians are losing their extraordinary leadoff hitter and adding one with power and potential.

Cleveland placed outfielder Steven Kwan, who leads the AL with a .353 average, on the 10-day injured list Monday with a strained hamstring he sustained while running down a fly ball over the weekend.

Kwan felt tightness in his hamstring and was pulled from Saturday’s win over the Angels as a precaution. An MRI revealed an acute strain and the Guardians said Kwan likely will be out for up to one month.

Kwan said he had hamstring issues while playing at Oregon State and in the minors.

His injury is a blow to the AL Central-leading Guardians, but it’s giving the team a chance to promote hard-hitting prospect Kyle Manzardo, who has been bashing minor league pitchers this season and will now join a Cleveland lineup that can use some middle muscle.

The Guardians have been one of the season’s early surprise teams — they’re 22-12 heading into their series opener against Detroit — with Kwan a big reason for the club’s fast start.

He seems to start or be in the middle of virtually every rally, and the 26-year-old continues to be one of the league’s best defensive outfielders. Last year, he won his second straight Gold Glove.

Manzardo’s reputation as a slugger preceded his arrival in Cleveland.

The 23-year-old was acquired at last year’s trade deadline from Tampa Bay for pitcher Aaron Civale. The Rays were reluctant to part with Manzardo but they needed pitching while the Guardians have been craving a big bat in the middle of their order.

Manzardo had a strong spring for the Guardians, who had him start the season at Triple-A Columbus to build confidence. He’s done just that, hitting .303 with nine homers, 10 doubles and 20 RBI in 29 games.

Cleveland fans have been clamoring for Manzardo, who will likely play some first base and be used as a DH by first-year manager Stephen Vogt.

Also, the Guardians activated left-hander Sam Hentges from the injured list. The reliever has been out since training camp with a middle finger issue.

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White Sox bring up RHP Clevinger from Triple-A

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White Sox bring up RHP Clevinger from Triple-A

ST. PETERSBURG, Fla. — Right-hander Mike Clevinger was recalled by the Chicago White Sox from Triple-A Charlotte to start Monday night’s game at the Tampa Bay Rays.

Clevinger got a late start to the season after finalizing a $3 million, one-year contract on April 4.

The 33-year-old made two starts for Charlotte, allowing three runs and 10 hits, along with seven strikeouts over 7⅓ innings.

Clevinger can earn an additional $3 million in bonuses for starts and innings: $100,000 per start from 11-25 and $100,000 for 55 innings and each additional five through 125.

Clevinger went 9-9 with a 3.77 ERA and two complete games in 24 starts with the White Sox last season, then became a free agent.

He is 60-39 with a 3.45 ERA in 128 starts and 24 relief appearances in eight seasons with Cleveland (2016-20), San Diego (2020-22) and Chicago (2023). He missed the 2021 season after Tommy John surgery.

Chicago also placed right-hander Dominic Leone on the 15-day injured list with lower back tightness.

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