From Nasdaq: 2025-04-28 15:00:00

Microsoft is set to report its third-quarter fiscal 2025 results on April 30, with expectations of strong performance driven by Azure cloud platform growth. The company has made significant advances in artificial intelligence, expanding its Azure AI Foundry platform with new models and capabilities, totaling over 1,800 options for enterprise customers.

The Intelligent Cloud segment is projected to be Microsoft’s main growth driver in Q3, with revenue estimates between $25.9 billion and $26.2 billion. Azure’s revenue is expected to grow by 31-32% at constant currency, reinforcing Microsoft’s AI-focused strategy and overall performance.

Microsoft deepened its technology partnerships in Q3 to enhance its AI infrastructure and enterprise offerings. Collaborations with NVIDIA and SAP, among others, have strengthened Microsoft’s position in cloud infrastructure and enterprise applications, potentially expanding its market reach and competitiveness.

In Q3, Microsoft introduced innovative AI capabilities, such as the Responses API and Computer-Using Agent in Azure AI Foundry, to enhance autonomous AI functions. The company also launched Dragon Copilot, an AI assistant for clinical workflows in the healthcare sector, demonstrating its commitment to industry-specific AI solutions and advancements.

Investors are advised to maintain current positions in Microsoft ahead of earnings, considering the stock’s already high growth expectations. The market will closely watch Azure’s forecasted growth of 31-32%, and clarity on monetizing recent AI innovations is crucial. Waiting for a better entry point post-earnings may be prudent. Microsoft currently holds a Zacks Rank #3 (Hold).



Read more at Nasdaq: Azure Drives Microsoft’s AI Strategy: Wait for Q3 Before Buying