Group 1: Earnings Performance - Microsoft reported quarterly earnings of $3.46 per share, exceeding the Zacks Consensus Estimate of $3.20 per share, and up from $2.94 per share a year ago, representing an earnings surprise of 8.13% [1] - The company posted revenues of $70.07 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.46%, compared to $61.86 billion in the same quarter last year [2] - Over the last four quarters, Microsoft has consistently surpassed consensus EPS and revenue estimates [2] Group 2: Stock Performance and Outlook - Microsoft shares have declined approximately 6.5% since the beginning of the year, while the S&P 500 has seen a decline of 5.5% [3] - The future performance of Microsoft’s stock will largely depend on management's commentary during the earnings call and the outlook for earnings estimates [4][6] - The current consensus EPS estimate for the upcoming quarter is $3.28 on revenues of $72.03 billion, and for the current fiscal year, it is $13.03 on revenues of $275.39 billion [7] Group 3: Industry Context - The Computer - Software industry, to which Microsoft belongs, is currently ranked in the top 31% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

As Microsoft reported third-quarter earnings on Wednesday, chief financial officer Amy Hood's quarterly internal message to employees reflected on the company's 50th anniversary and touted recent AI agents as an example of what's to come. Hood sends the emails quarterly when Microsoft reports earnings, and they mostly rehash the public financial reports."Celebrating our 50th anniversary earlier this month was a significant milestone, and I really enjoyed reminiscing about pivotal (or just funny) moments fr ...

Financial Data and Key Metrics Changes - Revenue for the quarter was $70.1 billion, up 13% in constant currency [29] - Gross margin dollars increased 11% in constant currency, while operating income increased 16% in constant currency [29] - Earnings per share was $3.46, an increase of 18% in constant currency [29] Business Line Data and Key Metrics Changes - Microsoft Cloud revenue was $42.4 billion, growing 20% in constant currency [32] - Productivity and Business Processes revenue was $29.9 billion, growing 10% in constant currency, driven by LinkedIn and Microsoft 365 [33] - Intelligent Cloud segment revenue was $26.8 billion, growing 21% in constant currency, with Azure revenue growing 33% [37] - More Personal Computing revenue was $13.4 billion, growing 6% in constant currency, with gaming revenue increasing 56% [39][40] Market Data and Key Metrics Changes - Commercial bookings increased 18% in constant currency, significantly ahead of expectations [30] - Commercial remaining performance obligation increased to $315 billion, up 34% in constant currency [30] - LinkedIn membership grew at double digits year over year, with time spent on the platform up 36% [22] Company Strategy and Development Direction - The company continues to focus on cloud and AI as essential drivers for business growth, with significant investments in data center capacity and AI infrastructure [6][7] - Microsoft aims to optimize efficiencies across all layers of its operations, from data center design to model optimization [7] - The company is expanding its AI capabilities and integrating them into various products, including Microsoft 365 and Dynamics 365 [15][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing demand for cloud services and AI, despite potential economic uncertainties [81] - The company anticipates continued growth in its cloud and AI segments, with a focus on helping customers navigate economic challenges [82] - Management highlighted the importance of maintaining a balanced approach to data center investments and workload growth [60][65] Other Important Information - Capital expenditures for the quarter were $21.4 billion, slightly lower than expected [41] - Free cash flow was $20.3 billion, driven by strong cloud billings and collections [42] - The company returned $9.7 billion to shareholders through dividends and share repurchases, an increase of 15% year over year [42] Q&A Session Summary Question: Data center commitments and AI demand - Management clarified that adjustments to data center commitments are ongoing and are based on future workload growth [60][61] - The company is currently short on power in specific locations, impacting its ability to build or lease at desired rates [63][67] Question: Accelerating demand for cloud migrations - Management noted three key trends driving cloud migrations: classic migrations, data growth, and cloud-native growth [72][75] Question: Stability and sustainability in a potential recession - Management emphasized a focus on helping customers during economic turbulence, leveraging cloud efficiencies to mitigate impacts [81][82] Question: Azure growth and non-AI services - The majority of Azure's outperformance was attributed to non-AI services, with strong demand from enterprise customers [86][88]

Microsoft (MSFT) Q3 2025 Earnings Call April 30, 2025 05:30 PM ET Speaker0 Greetings, and welcome to the Microsoft Fiscal Year twenty twenty five Third Quarter Earnings Conference Call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce Jonathan Nielsen, Vice President of Investor Relations. Please go ahead. Speaker1 Good afternoon, and thank you for ...

About this content About Angela Harmantas Angela Harmantas is an Editor at Proactive. She has over 15 years of experience covering the equity markets in North America, with a particular focus on junior resource stocks. Angela has reported from numerous countries around the world, including Canada, the US, Australia, Brazil, Ghana, and South Africa for leading trade publications. Previously, she worked in investor relations and led the foreign direct investment program in Canada for the Swedish government ...

Microsoft reported it beat analysts' estimates during its third-quarter earnings call on Wednesday. "Cloud and AI are the essential inputs for every business to expand output, reduce costs, and accelerate growth," Satya Nadella, chairman and chief executive of Microsoft, said in a press release published ahead of the Q3 call. "From AI infra and platforms to apps, we are innovating across the stack to deliver for our customers."Ahead of Microsoft's earnings call on Wednesday, analysts at Piper Sandler said ...

Microsoft Third Quarter Fiscal Year 2025 Results Satya Nadella Amy Hood Jonathan Neilson April 30, 2025 This presentation contains forward-looking statements, which are any predictions, projections, or other statements about future events. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could materially differ because of factors discussed in today's earnings press release, in the comments made during the conference call, and in t ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period From to Commission File Number 001-37845 MICROSOFT CORPORATION WASHINGTON 91-1144442 (STATE OF INCORPORATION) (I.R.S. ID) ONE MICROSOFT WAY, REDMOND, WASHINGTON 98052-6399 (4 ...

Exhibit 99.1 Microsoft Cloud and AI Strength Drives Third Quarter Results "We delivered a strong quarter with Microsoft Cloud revenue of $42.4 billion, up 20% (up 22% in constant currency) year- over-year driven by continued demand for our differentiated offerings," said Amy Hood, executive vice president and chief financial officer of Microsoft. REDMOND, Wash. — April 30, 2025 — Microsoft Corp. today announced the following results for the quarter ended March 31, 2025, as compared to the corresponding peri ...

Microsoft will report its earnings for the third quarter of the fiscal year after the stock market closes on Wednesday. Analysts have predicted that revenue would grow by 10.6% year-over-year to $68.4bn, even as the company plows tens of billions into artificial intelligence as well as earnings-per-share of $3.22. The company has beaten Wall Street’s expectations on each of its previous three quarterly earnings reports.Analysts said they view the earnings report as a temperature check on Microsoft’s artific ...