MSFT reports blowout third-quarter fiscal 2025 results powered by cloud computing and AI growth.
Microsoft's FQ3 2025 earnings report shows a strong Rule of 40 score of ~52, driven by 15% growth and a ~37% net profit margin. I see good reasons for the score to further improve as its cloud segment grows at a rapid pace. I expect this segment to become its largest profit contributor in the near future and carry higher margins.
Microsoft reported record Q3 earnings, with revenues up 13% to $70.1 billion and strong growth in Azure and AI, driving the stock price higher. The company's cloud and AI segments are crucial growth drivers, with Azure sales growing 33%, surpassing expectations and highlighting robust demand. Despite trade environment concerns, Microsoft's cloud and AI services remain resilient, with tariffs having minimal impact on their primarily service-based growth.
Software - Infrastructure Industry | Technology Sector | Mr. Bradford L. Smith LCA CEO | NASDAQ (NGS) Exchange | US5949181045 ISIN |
US Country | 228,000 Employees | 15 May 2025 Last Dividend | 18 Feb 2003 Last Split | 13 Mar 1986 IPO Date |
Microsoft Corporation, a pioneering technology firm, plays a pivotal role in the global software, services, devices, and solutions sectors, delivering comprehensive and integrated offerings to a worldwide customer base. Since its establishment in 1975, Microsoft has evolved into a tech giant with its headquarters in Redmond, Washington. The company operates through a diverse and dynamic portfolio, comprising the Productivity and Business Processes, Intelligent Cloud, and More Personal Computing segments. By continuously innovating and expanding its product range, Microsoft aims to empower every person and every organization on the planet to achieve more.
Microsoft's wide-ranging products and services are strategically grouped into several segments, each tailored to meet the specific needs of its global user base:
Through a network of OEMs, distributors, resellers, digital marketplaces, online stores, and retail outlets, Microsoft ensures its products and services are easily accessible worldwide, continually striving to meet the evolving needs of its diverse customer base.