Microsoft Corp.’s stock gained more than 7% in late trading today after it beat expectations in its latest financial results thanks to strong growth in the cloud, and followed up with encouraging guidance for the current quarter.

The results are likely to ease concerns about a potential slowdown in AI demand, after some analysts pointed to canceled data center leases at Microsoft as a sign of excess capacity. Rival Alphabet also posted strong results last week,

Microsoft Corp. shares jumped after the company reported stronger-than-expected quarterly sales and profit growth, suggesting customer demand for cloud services has held steady despite a wave of tariffs and economic turbulence.