Q3 25 EPS
$3.46
BEAT +7.59%
Est. $3.22
Q3 25 Revenue
$70.07B
BEAT +2.37%
Est. $68.44B
vs S&P Since Q3 25
-30.2%
TRAILING MARKET
MSFT -1.2% vs S&P +29.0%
Market Reaction
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 $3.22 consensu… Read more 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 $3.22 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, investors will be watching closely 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)
MSFT YoY Financials
Q3 2025 vs Q3 2024, source: SEC Filings
MSFT Revenue by Segment
With YoY comparisons, source: SEC Filings
“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.”
— Satya Nadella, Q3 2025 Earnings Press Release
MSFT Earnings Trends
MSFT vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
MSFT EPS Trend
Earnings per share: estimate vs actual
MSFT Revenue Trend
Quarterly revenue: estimate vs actual
MSFT Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q3 26 | — | $4.27 | — | $82.89B | +1.79% |
| Q2 26 BEAT | $3.85 | $4.14 | +7.57% | $81.27B | +1.24% |
| Q1 26 BEAT | $3.66 | $4.13 | +12.78% | $77.67B | +3.03% |
| Q4 25 BEAT FY | $3.38 | $3.65 | +7.99% | $76.44B | — |
| FY Full Year | $13.41 | $13.64 | +1.73% | $281.72B | +0.95% |
| Q3 25 BEAT | $3.22 | $3.46 | +7.59% | $70.07B | +2.37% |