On April 30, 2025, after the market closed, Microsoft released its fiscal third-quarter earnings report, and it was a pleasant surprise for investors. Despite concerns about President Trump’s tariffs impacting the tech sector, Microsoft managed to beat Wall Street’s expectations, leading to a 9% surge in its stock price during after-hours trading.
So, what exactly did Microsoft report? For the quarter that ended on March 31, 2025, the company reported $70.1 billion in revenue, surpassing analysts’ expectations of $68.53 billion. Earnings per share were $3.46, beating the forecasted $3.23. These are impressive results, especially in a challenging economic climate.
The real standout here is Microsoft’s cloud business. Azure, their cloud platform, saw growth that exceeded what Wall Street was predicting. And let’s not forget about artificial intelligence. Microsoft is making significant investments in AI. CEO Satya Nadella highlighted plans to spend $80 billion on building data centers for AI workloads in fiscal 2025. That’s a substantial commitment, underscoring how serious Microsoft is about leading in this cutting-edge field.
Now, about those tariffs. They’re definitely a hot topic. During the earnings call, Microsoft’s CFO Amy Hood addressed how the company is managing the situation. She explained that Microsoft is diversifying its supply chain and exploring new markets to mitigate potential impacts. Additionally, she emphasized that their cloud and AI businesses are relatively insulated from trade disputes, which is reassuring for investors.
Handpicked Reads You Might Like: RTX Stock’s Earnings Paradox: Here’s What Investors Need to Know
Before this earnings report, Microsoft’s stock had been facing some headwinds, down 6% year-to-date. But this strong performance seems to have shifted the momentum, at least for now. Analysts are largely optimistic, pointing to Microsoft’s dominance in cloud computing and AI as key drivers of future growth. However, they also caution that the full effects of the tariffs are still unfolding, so it’s something to keep an eye on.
Microsoft’s latest earnings demonstrate the company’s ability to perform well even in challenging economic times. With a strong focus on cloud computing and artificial intelligence, Microsoft is positioned for continued growth, making it a stock to watch in the tech sector.
