MSFT — Q3 2025 Earnings Call
TechnologyMicrosoft Corporation • Reported: 2025-04-30
EPS Actual
$3.46
Est. $3.22
▲ Beat
Revenue Actual
$70.1B
Est. $68.4B
▲ Beat
Overall Result
Double Beat
EPS + Revenue vs. estimates
Period
Q3 2025
FY2025 • Reported 2025-04-30
Executive Summary
Microsoft reported Q3 FY2025 revenue of $70.1 billion, up 13% year-over-year, with Azure growing 35% driven by AI demand. AI business annual run rate exceeded $16 billion. The company raised full-year guidance, signaling confidence in sustained AI-driven growth across all three business segments.
Key Highlights
Cloud
positive
Azure accelerates to 35%
Azure and cloud services grew 35%, with AI contributing 16 points of growth, up from 13 points last quarter.
AI
positive
AI run rate passes $16B
AI business annual revenue run rate exceeded $16B, accelerating from $13B the prior quarter.
Revenue
positive
Revenue beats by $1.7B
Total revenue of $70.1B beat consensus of $68.4B, growing 13% YoY across all segments.
Guidance
positive
Full-year guidance raised
Microsoft raised FY2025 guidance, signaling confidence in sustained AI-driven growth.
Copilot
positive
Copilot seats surpass 400K orgs
Microsoft 365 Copilot adopted by over 400,000 organizations, with measurable productivity gains reported.
Direct Quotes
SN
Satya Nadella
CEO • AI Transformation
"AI is no longer just a technology bet — it's driving real business transformation at scale. Azure AI revenue growth is accelerating as customers move from pilots to production."
AH
Amy Hood
CFO • Financial Results
"Revenue was $70.1 billion, up 13%, with continued strong execution across each segment. We are raising our full-year outlook based on the momentum we're seeing."