Microsoft (NASDAQ: MSFT) reported its Q2 fiscal 2025 results, with revenue and earnings beating street estimates. The company’s Azure cloud computing sales growth rate has slowed, but its overall revenue reached $69.6 billion, a 12% year-over-year increase.
Productivity and Business Processes sales grew 14%, driven by higher sales of Microsoft 365 products and LinkedIn solutions. Intelligent Cloud segment revenue increased 19%, led by Azure and other cloud offerings. More Personal Computing sales remained unchanged at $14.7 billion.
Microsoft’s operating margin expanded to 45.5% in Q2, resulting in earnings of $3.23 per share. The company’s AI-related revenue has reached an annual run rate of $13 billion.
However, the company’s outlook for Q3 was below expectations, leading to lower levels for MSFT stock post the results announcement. Despite this, analysts believe that MSFT stock may have some room for growth after its recent dip.
The Trefis High-Quality portfolio has outperformed the S&P 500 index over the last four-year period, with returns of >91%. Microsoft’s stock underperformed the S&P 500 in 2024, but analysts estimate it could reach $485 per share, reflecting around 15% upside from its current levels.
Source: https://www.forbes.com/sites/greatspeculations/2025/01/30/whats-happening-with-msft-stock