Photo by Sunder Muthukumaran on UnsplashYesterday, Microsoft (MSFT) announced its first quarter results that surpassed market expectations. The market was impressed, and the stock gained 4% in the after hours trading session. Microsoft’s FinancialsMicrosoft’s revenues grew 13% to $56.52 billion, significantly ahead of the market’s forecast of $54.5 billion. Adjusted income grew 27% to $2.99 per share, which was also ahead of the Street’s forecast of $2.65 per share.Microsoft’s Intelligent Cloud segment revenues grew 19% to $24.26 billion, ahead of the $23.49 billion consensus. Azure revenues jumped 29%, faster than the estimated 26%. Microsoft does not disclose Azure revenue in dollars. Revenues from the Productivity and Business Processes unit grew 13% to $18.59 billion, ahead of the Street’s forecast of $18.19 billion. Revenue from its More Personal Computing segment grew 3% to $13.67 billion, also ahead of the consensus of $12.85 billion. For the second quarter, the market is forecasting revenues of $58 billion with an EPS of $2.63. Analysts expect Microsoft to end the year with revenues of $233.76 billion with an EPS of $10.90.After a long delay, earlier this month, Microsoft completed its $68.7 billion acquisition of video game publisher Activision Blizzard. Microsoft’s Focus AreasMicrosoft continues to improve its AI offerings and recently announced plans to allow enterprises to purchase access to Copilot to supplement its core productivity offerings of Excel and Word. Microsoft 365 Copilot has been created in collaboration with OpenAI. Microsoft is relying on OpenAI’s GPT-4 LLM to help users in summarizing information or generate human-like text in response to a written prompt. Turning AI into a big revenue business may take time, but the company is looking for growth from AI services as organizations adopt certain Azure capabilities and Copilots.Besides AI, Microsoft is also expanding its security offerings. The company plans to grow its Security, Compliance, Identity and Management business to $100 billion by 2030, compared to $20 billion generated last year. It is expanding into the market with the launch of new Entra products, along with the existing Microsoft Defender for Cloud Apps as part of its Secure Service Edge services. Microsoft Entra Private Access service offers an alternative to VPNs to let employees access internal programs while working remotely. Microsoft Entra Internet Access helps security administrators control employees’ connections to cloud apps, including Microsoft 365 applications such as Teams.The company’s stock is trading at $342.80 with market capitalization of $2.46 trillion. It had climbed to a 52-week high of $366.78 in July this year. It hit a 52-week low of $213.43 in October last year.More By This Author:People.ai Leverages GenerativeAI To Make Selling SimpleCloud Stocks: MongoDB Focuses On Verticalized OfferingsCloud Stocks: Klaviyo Tests The IPO Market