Microsoft shares grow on FY25 Q3 earnings, beating expectations with a 13% increase year-over-year, driven by cloud, gaming, and AI

Yesterday evening, Microsoft shared its FY25 Q3 financial results, and it was a positive trend of growth throughout their business sectors. This announcement led to an increase in Microsoft’s stock prices, rising by 1.2 points during after-hours trading, potentially increasing even more when the market opens fully later today.

In his statement, CEO Satya Nadella highlighted that we had an exceptional quarter, with Microsoft Cloud revenue reaching $42.4 billion, marking a 20% increase compared to the previous year. This impressive growth was fueled by the ongoing interest in our unique and distinct product offerings.

Microsoft’s revenue hit $70.1 billion in revenue, 13% up year-over-year, with an operating income of $32 billion and a net income of $25.8 billion.
Earnings per share hit $3.46, beating Wall Street estimates.
Microsoft’s Productivity and Businesses revenue grew 10%, driven by Microsoft 365 and Dynamics 365.
Intelligent Cloud, which includes Azure, grew by a massive 21%, with Azure alone growing 33% year-over-year.
More Personal Computing revenue, which includes Windows, rose 6%.
Xbox and gaming grew by 6% overall, with hardware down 6% and content and services growing 8%. PC Game Pass grew by 45% year over year, and Xbox Cloud Gaming hit 150 million hours streamed for the quarter, up 10 million.
Microsoft returned $9.7 billion to shareholders through dividends and stock buybacks.

As a tech enthusiast, I’d rephrase it like this: I acknowledge that global tariffs and geopolitical issues could potentially disrupt economic stability in the short term, which might impact Microsoft’s profitability. However, I remain hopeful about AI and cloud services as these sectors are projected to fuel our growth. Furthermore, we’re excited about the prospects of our quantum computing endeavors, inspired by the recent Majorana-1 breakthrough.

In addition, Microsoft celebrated a surge in user interaction with services such as Copilot and Bing. They reported that the usage of Copilot rose by 35% from one quarter to another, reaching approximately 100 million users through Microsoft 365. Furthermore, they noticed an increase in user engagement on Bing by 22% as well.

As a tech enthusiast, I couldn’t help but notice that Microsoft didn’t give any details about their Surface line in their recent earnings report. However, rumors suggest that we might be seeing some exciting new additions to the Surface family soon, under the Copilot+ range.

2025-05-01 09:39

Microsoft shares grow on FY25 Q3 earnings, beating expectations with a 13% increase year-over-year, driven by cloud, gaming, and AI

🛑 Trump Tariffs vs. Euro: The Fight of the Decade?

Read More