Microsoft has reported its financial results for the third quarter of fiscal year 2025, significantly surpassing analyst expectations and underscoring the company's robust position in the cloud and artificial intelligence sectors. Shares in the tech giant surged by as much as 7% in after-hours trading.
Key Figures from the Report:
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app- Revenue: $70.1 billion (up 13% year-over-year, versus an expected $68.4 billion)
- Net Income: $25.8 billion (up 18% year-over-year)
- Earnings per Share (EPS): $3.46 (versus an expected $3.21)
- Cloud Revenue: $42.4 billion (up 20% year-over-year)
- Intelligent Cloud Revenue: $26.8 billion (up 21% year-over-year)
- Productivity & Business Processes Revenue: $29.9 billion (up 10% year-over-year)
- More Personal Computing Revenue: $13.4 billion (up 6% year-over-year)
- Azure and other cloud services revenue growth (constant currency): +33% (versus an expected +31%)
- AI contribution to Azure growth: 16 percentage points (versus an expected 15.6)
Key Growth Drivers:
- Cloud and AI: The cloud segment remains a primary engine of growth for Microsoft. Cloud revenues reached $42.4 billion, with Azure's expansion being fuelled by increasing adoption of AI solutions by enterprise clients.
- Productivity and Business: Revenue from offerings such as Office 365, Dynamics, and LinkedIn also saw growth, demonstrating a broad diversification of revenue streams.
- Personal Computing: The segment encompassing Windows, Xbox, and search advertising recorded moderate growth, with a notable rebound in advertising and Xbox content and services revenue.
Management Commentary:
Satya Nadella, Microsoft’s Chief Executive Officer, emphasized that “the Microsoft Cloud and AI are powering organizations across every industry to improve productivity, drive cost efficiencies, and accelerate growth. We remain committed to pushing the boundaries of what’s possible with AI, delivering innovation across our entire stack – from infrastructure to applications – to provide customers with differentiated value."
Amy Hood, Chief Financial Officer, highlighted the strong demand for the company’s cloud offerings and its operational efficiency, which translated into robust profit growth and operating margin.
Market Reaction:
After-hours trading indicated a 7% surge in Microsoft’s stock price. Should the stock open around $420 per share, it would represent the highest levels seen since January 31st.
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
