From Yahoo Finance: 2025-05-04 11:41:00

Microsoft reported strong fiscal Q3 results, with Azure cloud computing revenue growing by 33%. Azure and AI are expected to continue driving growth. The company forecasts Azure revenue to grow by 34-35% in Q4. Overall revenue increased by 13% to $70.1 billion, with EPS jumping 18% to $3.46.

Microsoft’s productivity and business processes segments saw revenue climb 10% to $29.9 billion. Microsoft 365, LinkedIn, and Dynamics all experienced growth. Revenue in the “more personal computing” segment rose 6% to $13.4 billion. Search and news advertising led with 21% growth.

With strong post-earnings gains, Microsoft’s stock trades at a forward P/E ratio of under 29. Azure remains a strong growth driver, while other segments also show solid performance. Microsoft plans to invest more in short-lived assets next fiscal year for better revenue correlation. It’s a solid long-term stock but may not be a bargain price currently.

Read more: Is “Magnificent Seven” Laggard Microsoft Ready to Rally?