Microsoft's cloud computing business grew strongly, rising 6% after hours.

Microsoft's quarterly revenue topped expectations on Wednesday on the back of strong growth in its Azure cloud computing business, giving investors confidence that its huge investment in artificial intelligence is paying off and sending the company's shares up more than 6 percent in after-hours trading. The result is likely to ease concerns about slowing demand for artificial intelligence after some analysts pointed to Microsoft's cancellation of data center leases as a sign of overcapacity. Investors are also concerned about the fallout from sweeping U.S. tariffs that are prompting companies to rein in spending. Microsoft said revenue from its Azure cloud computing unit rose 33 percent in its fiscal third quarter, which ended March 31, beating Visible Alpha's estimate of 29.7 percent. The Intelligent Cloud division, which owns Azure, recorded revenue of $26.80 billion, beating expectations of $26.17 billion. According to data compiled by LSEG, the company's overall revenue rose 13% to $70.10 billion, beating analysts' average estimate of $68.42 billion.