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Microsoft (MSFT-0.92%) Blew past streets in the street in her fiscal third quarter, increasing $ 7.5 billion, increased by 13%, and 25.8 billion dollars in net income, 18% increased by an inexorable cloud demand.
The salary came in the amount of $ 3.46 per share, easily intertwined by consensus estimates of $ 3.22.
Cloud remains hot
Microsoft cloud was guarded by entering Q3, and Azure and other cloud services that are 33% compared to more than a year, 21% increase in the whole important intelligent segment, which struck $ 26.8 billion. The revenue of the server product increased by 22%, because the demand for and the infrastructure remained hot.
Microsoft 365 and Xbox delivery, LinkedIn grows
The segment of productivity and business processes brought $ 29.9 billion, which is 10% since last year, driven by constant growth in Microsoft 365 and Dynamics. Microsoft 365 commercial revenue increased by 11%, and its cloud-based municipality 12%, while consumer income increased 10%. Dynamics 365 jumped 16%, raising dynamics in total by 11%.
LinkedIn sliced a gain of 7%, which can look unimpressive for some, but feels like a feat on this labor market spending. (For the context, last year decreased with 10% revenue growth, and revenue growth of 9% in Q2 2025))
Meanwhile, more personal computing generated $ 13.4 billion, an increase of 6%. Xbox content and services rose 8%, searching and advertising the news increased by 21%, and Windows OEM and devices have risen 3% – a rare bright spot in the second category.
Microsoft also returned 9.7 billion shareholders over dividends and redemptions.
Chariable call focused on demand and hyperkaling
The call for earnings, Microsoft executives emphasized the clean AI pace that relate to AI, saying that they cannot build up data centers quickly enough. Hyperscaling – fast spread of the cloud infrastructure – has become systemska, launched not only digital-original startups, but major customers companies over the industry.
Microsoft quoted Abercrombie & Fitch (Anf-0.62%), Coca-Cola (That-0.01%), and BNY Mellon (Bk-0.81%) As examples of large customers largely tilted in AI and non-workload. The Management Board noticed that digital registry clients are increasingly doing both work loads in the same cloud, deepening the adhesion of relationships.
AI Vs. Non-and growth
Although the analysts are zero on AI during a call, management quickly pointed out the highest increase in revenues of this quarter from non-AI loads.
However, the story remains convincing: Microsoft has effectively turned its capital expenditures – on GPU, CPU, storage and infrastructure, creating what an analyst called “inspiring” performance of Azure. The managers described a blurred line between the use of AI and NI, which reflects as integrated and became via Microsoft’s cloud offer.
Forward leadership
Microsoft is kept for a strong fiscal year, forecasting q4 revenue in the amount of 28.75 to $ 29.05 billion, which reflects 20% to 22% growth in constant currency, and for $ 32.35 for the productivity and transmission growth.
The revenue from several personal computer segment is expected to reach between 12.35 and 12.85 billion dollars. Despite heavy investments and infrastructure, the company still expects Microsoft Cloud Gross Margins to land about 67%, down from the previous year. Total operating expenses are set to grow modestly to 18 to 18.1 billion dollars, while Kogs will increase abruptly, reach 23.6 to 23.8 billion dollars, reflecting 20% increase.
Azure remains a central engine growth, and the income is expected to be detached 34% to 35% in constant currency. Microsoft envisages 365 commercial income in a cloud increase about 14%, while projecting the consumer version to grow in medium teenagers. The technical giant expects that LinkedIn will deliver a high-digit growth, and the dynamics 365 is set to increase the teenagers of the middle to high teenagers.
The multi-personal computing is expected that Xbox content and services grow in high-digit digits, and for search and news are projected in high teenagers.
Flashback on Q2
Microsoft turned in a similar way to which the last quarter was shown, publishing $ 69.6 billion in revenue, a rise of 12%, and $ 24.1 billion in net income, increased in the amount of 10%, with EPS of $ 3.23. The income from Microsoft Cloud jumped 21% to $ 40.9 billion, initiates 31% winnings in Azure and other cloud services. The whole of Satya Nadella broke out 13 billion dollars the annual work rate for and the company’s operations – 185% increased compared to a year.
Productivity and business processes increased by 14%, raised Microsoft 365, LinkedIn and Dynamics. More personal computing was flat, but searching advertising, in an increase of 21% and modest growth in Xbox and Windows OEM, they helped balance things.
Although so, investors sold News: Microsoft shares fell 6% the next day.
This time, however, a moment looks like it will last. The stock has risen by 8% after an hour.
2025-04-30 22:57:00
