Wall Street predicts Microsoft Q3 earnings up, revenue increase; stock performance -0.8%

From Nasdaq: 2025-04-25 09:15:00

Wall Street analysts predict Microsoft (MSFT) will report quarterly earnings of $3.20 per share, up 8.8% year-over-year, with revenues expected to be $68.38 billion, a 10.6% increase from last year. Analysts revised EPS estimates down by 1% in the past month, impacting investor predictions.

Analysts highlight the importance of considering earnings projection revisions before a company’s release, as they can influence investor behavior. Studies show a strong correlation between earnings estimate trends and short-term stock performance. While consensus estimates are widely used, specific metrics provide valuable insights into Microsoft’s performance.

Analysts project specific key metrics for Microsoft, including estimates for ‘Revenue- Productivity and Business Processes’ at $29.63 billion (+51.4% YoY) and ‘Revenue- More Personal Computing’ at $12.64 billion (-18.9% YoY). Additional forecasts cover ‘Revenue- Intelligent Cloud,’ ‘More Personal Computing- Search and news advertising,’ ‘Revenue- Windows,’ and ‘More Personal Computing- Revenue from Gaming.’

Analysts anticipate changes in revenue for Microsoft segments, like ‘Intelligent Cloud,’ ‘Productivity and Business Processes,’ and ‘More Personal Computing.’ Projections suggest variations from the previous year, providing insights into potential performance. These estimates allow investors to gauge Microsoft’s overall financial health and growth prospects.

Microsoft’s stock performance has shown a -0.8% return in the past month compared to the Zacks S&P 500 composite’s -4.8% change. With a Zacks Rank #3 (Hold), MSFT is expected to mirror market performance. Investors can access Zacks’ range of services for $1 to explore various investment opportunities and make informed decisions based on expert recommendations.



Read more at Nasdaq: Insights Into Microsoft (MSFT) Q3: Wall Street Projections for Key Metrics