Microsoft ($MSFT) shares jumped after the company delivered a stronger-than-expected fiscal first quarter, putting the stock on pace for its best session in more than three months. Deepwater Asset Management’s Gene Munster said the results suggest traditional software demand remains stronger than expected despite growing concerns that AI agents could disrupt the sector. “Software is alive and well, at least for now,” Munster said, pointing to 17% growth in Microsoft 365 commercial cloud revenue and saying software growth is actually accelerating rather than weakening. Microsoft reported revenue of $92.3 billion, up 19% year over year and marking its fastest growth rate since late 2021. Adjusted earnings came in at $4.89 per share. Microsoft Cloud revenue climbed 30% to $63.9 billion, while Azure revenue surged 48% to $33.17 billion and exceeded expectations. The company’s commercial backlog reached $677 billion, up 73%, while free cash flow totaled $18.6 billion despite $45.2 billion in quarterly capital spending. Microsoft also guided Azure growth to 49% to 50% for the December quarter, reinforcing expectations that cloud and AI infrastructure demand remain strong. Munster remains cautious longer term, arguing that AI could eventually become a headwind for Microsoft’s software business as automation reduces knowledge-worker demand. For now, though, he said the latest quarter shows software growth is still holding up better than expected.