Microsoft forecasts strong growth for Azure cloud business, shares surge 7%

Microsoft forecast on Wednesday stronger-than-expected quarterly growth for its cloud-computing business Azure after blowout results in the latest quarter, calming investor worries in an uncertain economy and lifting its shares 7% after hours. Microsoft’s results, which follow similar outcomes from Google last week, could ease concerns about a potential slowdown in AI demand, after some analysts pointed to cancelled data-centre leases at Microsoft as a sign of excess capacity.

Investors had also been worried about the fallout from sweeping US tariffs…