From Nasdaq: 2025-05-04 23:21:00

Microsoft (NASDAQ: MSFT) exceeded revenue and earnings estimates in fiscal Q3 2025, reporting $70.1 billion in revenue and $3.46 per share earnings. Azure cloud sales boosted performance, leading to a strong fourth-quarter outlook. Despite a 6% YTD stock decline, MSFT remains resilient in the face of tariffs and trade wars.

Microsoft’s Q3 revenue of $70.1 billion saw a 13% y-o-y increase, driven by growth in Productivity, Business Processes, and Intelligent Cloud segments. Azure and cloud services revenue surged 33%, with an operating margin expansion to 45.7%. Expectations for Q4 revenue of $73.7 billion, driven by a projected 34-35% Azure growth.

Investors responded positively to Microsoft’s strong Q3 results, with MSFT stock surging 7% in after-hours trading. Despite recent volatility, MSFT stock has room for growth, with a valuation estimate of $500 per share, implying an 18% upside potential. Consider the Trefis High-Quality Portfolio for a less volatile investment option.

In the face of uncertain macroeconomic conditions, MSFT stock shows promise for further growth. With a valuation forecast of $500 per share, representing an 18% upside potential, Microsoft’s elevated P/E ratio is justified by expected earnings growth from its Cloud business. Consider peer comparisons and Trefis Market-Beating Portfolios for investment insights.



Read more at Nasdaq: What’s Next For Microsoft Stock After An Upbeat Fiscal Q3?