Companies /Technology

Microsoft Corporation

NASDAQ: MSFT Software - Infrastructure
$510.12
▲ $13.30 (+2.68%) today
Markets closed · 8:26pm ET

Q3 2025 Earnings

Reported Apr 30, 2025, 4:06pm ET · SEC source
$3.46
Beat +7.45%
EPS · est. $3.22
$70.1B
Beat +2.37%
Revenue · est. $68.4B
+2.1%
Beating market
MSFT vs S&P since report
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−4%0+4%Apr 30May 1report 4:06pm ETearnings+0.2%+2.8%
−4%0+4%Apr 30May 1earnings+0.2%+2.8%
MSFT +2.8%S&P 500 +0.2%
−4%0+4%Apr 30May 1report 4:06pm ETearnings+0.1%+2.8%
−4%0+4%Apr 30May 1earnings+0.1%+2.8%
MSFT +2.8%NASDAQ +0.1%
−8%−4%0+4%Apr 29May 8report 4:06pm ETearnings+1.3%+4.6%
−8%−4%0+4%Apr 29May 8earnings+1.3%+4.6%
MSFT +4.6%S&P 500 +1.3%
−8%−4%0+4%Apr 29May 8report 4:06pm ETearnings+1.7%+4.6%
−8%−4%0+4%Apr 29May 8earnings+1.7%+4.6%
MSFT +4.6%NASDAQ +1.7%
+7.63%
Day of report
+2.32%
Next session
+3.00%
One week
+8.83%
30 days

S&P 500 over the same 30 days: +6.74%.

Did MSFT Beat Earnings? Q3 2025 Results

Microsoft capped fiscal Q3 2025 with a decisive beat on both top and bottom lines, as surging cloud and AI demand powered results that left Wall Street estimates well behind. The company posted earnings per share of $3.46, clearing the $3.216 consensus by 7.59%, while revenue climbed 13.3% year-over-year to $70.07 billion against expectations of $68.44 billion — a 2.37% positive surprise. The single biggest driver was the Intelligent Cloud segment, where Azure and other cloud services grew 33%, lifting segment revenue to $26.75 billion and pushing total Microsoft Cloud revenue to $42.40 billion, up 20% from a year ago. Operating income rose 16% to $32.00 billion, and net income grew 18% to $25.82 billion, reflecting a favorable revenue mix shift toward higher-margin cloud offerings even as capital expenditures jumped to $16.75 billion to fund AI infrastructure buildout. With the broader competitive AI landscape intensifying across the industry, <a href="https://247wallst.com/investing/2025/07/30/live-does-microsoft-nasdaq-msft-rally-after-todays-earnings/">investors will be watching closely</a> as management is expected to provide formal guidance during its April 30 earnings call.

Key Takeaways
  • Azure and other cloud services revenue growth of 33% (35% in constant currency)
  • Microsoft Cloud revenue of $42.4 billion, up 20% year-over-year
  • Microsoft 365 Commercial cloud revenue growth of 12% (15% in constant currency)
  • Dynamics 365 revenue growth of 16% (18% in constant currency)
  • Search and news advertising revenue ex-TAC increased 21% (23% in constant currency)

“Cloud and AI are the essential inputs for every business to expand output, reduce costs, and accelerate growth. From AI infra and platforms to apps, we are innovating across the stack to deliver for our customers.”

Microsoft CEO, on the earnings call

Forward Guidance & Outlook

Microsoft indicated it would provide forward-looking guidance during its earnings conference call and webcast on April 30, 2025. No specific numerical guidance was included in the press release.

MSFT YoY Financials

Q3 2025 vs Q3 2024 · SEC filings Q3 2024 Q3 2025
$0$20.0B$40.0B$60.0B$61.9B$70.1BRevenue$43.4B$48.1BGross Profit$27.6B$32.0BOperating Income$21.9B$25.8BNet Income
$0$20.0B$40.0B$60.0BRevenueGross ProfitOperating IncomeNet Income

MSFT Revenue by Segment

Microsoft Cloud
Intelligent Cloud$26.8B+21.0%
Productivity and Business Processes$29.9B+10.0%
More Personal Computing$13.4B+6.0%

Figures from SEC filings and company reports. Not investment advice.