After 10 consecutive quarters of increased spending for artificial intelligence, the company has tapped on the brakes, according to new financial results.

Despite turbulence in the U.S. economy and tech sector, Microsoft reported $70.1 billion in sales for the January-March quarter.

Microsoft on Wednesday said its profits rose 18% for the January-March quarter, driven by its growth in its cloud computing and artificial intelligence business in a turbulent time for the tech sector

Microsoft (NASDAQ: MSFT) is up nearly 9% to $430.11 on the day. All thanks to strong earnings with third quarter adjusted EPS OF $3.46 a share on revenue of $70.1 billion. Meanwhile, analysts were only looking for adjusted EPS of $3.

Microsoft rallied 7.6% after the software giant said strength in its cloud computing and artificial intelligence businesses drove its overall revenue up 13% from a year earlier. Meta, the parent company of Facebook and Instagram,

Meta raised its capital expenditures guidance for 2025 to $64 billion to $72 billion, signaling huge AI investment by Big Tech is still underway.