Microsoft delivered better-than-expected quarterly results, driven by its Azure cloud business. The company’s earnings per share rose to $3.46, exceeding analyst estimates of $3.22. Revenue grew 13% year-over-year, reaching $70.07 billion.
However, investors will be closely watching the company’s upcoming earnings call for insight into how President Trump’s tariffs are impacting the business. Microsoft plans to spend $80 billion on data center construction by 2025, which could lead to increased costs due to imports from overseas.
The Azure cloud business grew 33%, with 16 points of growth attributed to artificial intelligence. Capital expenditures reached $16.75 billion, a 53% increase. The Intelligent Cloud unit, including Azure, generated $26.75 billion in revenue, surpassing StreetAccount’s consensus.
Microsoft also saw revenue growth in its Productivity and Business Processes segment, driven by Office software subscriptions and LinkedIn. However, the company announced an adjustment to its relationship with AI partner OpenAI, stating it would have a right of first refusal on new computing capacity.
As of Wednesday, Microsoft shares rose over 6% in extended trading, driven by the strong quarterly results. Executives will issue guidance and discuss the results on a call with analysts starting at 5:30 p.m. ET.
Source: https://www.cnbc.com/2025/04/30/microsoft-msft-q3-earnings-report-2025.html