From Financial Modeling Prep: 2025-05-01 03:37:00

Microsoft Corporation (NASDAQ:MSFT) exceeded Q3 expectations with $3.46 EPS on $70.1 billion revenue, driving shares up 6% in after-hours trading. Azure saw 33% YoY growth, with AI workloads contributing 16% to the surge. Intelligent Cloud revenue hit $26.75 billion, beating estimates and highlighting AI’s importance in Microsoft’s cloud business.

Despite concerns, Microsoft’s Q3 capex rose 52.8% to $16.75 billion, reflecting heavy investment in AI-optimized data centers. This spending signals confidence in long-term cloud infrastructure returns outweighing short-term margin pressure. Analysts are using scenario analysis to model Microsoft’s future cash flows amid accelerated AI adoption.

Investors are eyeing CFO margin guidance and AI partnerships as catalysts. New agreements or service launches expanding Azure’s enterprise footprint could drive further growth. Macro data on IT spending surveys may impact sentiment, as cloud spend tends to correlate with corporate IT budgets. By combining earnings beat with DCF analysis, investors can better assess Microsoft’s long-term value trajectory.



Read more at Financial Modeling Prep:: Microsoft Q3 Cloud Boom Fuels 6% After-Hours Rally