Earnings Preview: Microsoft anticipated to report larger Q3 income, revenue

Tech behemoth Microsoft Corp. (NASDAQ: MSFT) is making ready to report its third-quarter 2025 outcomes, amid expectations for a year-over-year enhance in income and earnings. The corporate has carried out properly just lately, leveraging its booming cloud enterprise and quickly increasing AI capabilities, seamlessly integrating the know-how throughout its services.

What to Search for

Microsoft will report Q3 outcomes on Wednesday, April 30, at 4:05 pm ET. Analysts following the software program large are bullish of their forecasts, with consensus estimates projecting a ten.6% enhance in third-quarter income to $68.44 billion. On a per-share foundation, web revenue is predicted to rise about 10% YoY to $3.22.

Microsoft’s inventory has traded under its 52-week common value for almost three months. The final closing value is about 17% decrease than the document highs of July 2024. The latest dip in value presents a possibility to personal this blue-chip inventory which seems to have robust development potential. Microsoft just lately reclaimed its place because the world’s largest firm, surpassing Apple, which misplaced important market cap after the federal government imposed new import tariffs on China.

Microsoft’s CEO Satya Nadella stated in the course of the Q2 2025 earnings name, “We proceed to broaden our information middle capability in keeping with each near-term and long-term demand indicators. Now we have greater than doubled our general information middle capability within the final three years, and we now have added extra capability final yr than every other yr in our historical past. Our information facilities, networks, racks, and silicon are all coming collectively as an entire system to drive new efficiencies to energy each the cloud workloads of right now and the next-generation AI workloads.”

Robust Q2

For the second quarter, the corporate reported better-than-expected income, marking the eighth consecutive beat, whereas earnings exceeded estimates for the tenth consecutive quarter. Income totaled $69.6 billion in Q2, in comparison with $62.02 billion in the identical interval of 2024. The topline benefitted from robust efficiency by the Clever Cloud division. Internet revenue elevated to $24.11 billion or $3.23 per share within the December quarter from $21.87 billion or $2.93 per share within the earlier yr’s comparable interval.

Microsoft’s long-term prospects stay robust, supported by its rising presence within the cloud market, giving robust competitors to market leaders like Amazon Internet Providers. The mission-critical nature of its software program merchandise makes them indispensable for a lot of organizations. Furthermore, the corporate is much less uncovered to tariff-related commerce tensions than tech friends like Apple and Nvidia.

After a modest begin to the week, MSFT picked up energy and has maintained that momentum. On Friday, the shares traded decrease within the early hours of the session.