What to Expect From Microsoft's Q3 2025 Earnings Report

With a market cap of $2.9 trillion, Redmond, Washington-based Microsoft Corporation (MSFT) is one of the world’s largest and most influential technology providers. The company offers a wide range of software, services, devices, and cloud solutions across its Productivity and Business Processes, Intelligent Cloud, and More Personal Computing segments.

The software maker is slated to announce its fiscal Q3 2025 earnings results on Thursday, Apr. 24. Ahead of this event, analysts expect MSFT to report a profit of $3.20 per share, a 8.8% growth from $2.94 per share in the year-ago quarter. It has exceeded Wall Street's earnings expectations in the past four quarters. In Q2 2025, MSFT beat the consensus EPS estimate by 3.9% margin.

More Top Stocks Daily: Go behind Wall Street’s hottest headlines with Barchart’s Active Investor newsletter.

 

For fiscal 2025, analysts expect MSFT to report EPS of $13.06, marking a growth of 10.7% from $11.80 in fiscal 2024. Moreover, EPS is anticipated to grow 12.4% year-over-year to $14.68 in fiscal 2026.

www.barchart.com

Shares of Microsoft have declined 10.3% over the past 52 weeks, underperforming the broader S&P 500 Index's ($SPX) nearly 2% rise and the Technology Select Sector SPDR Fund's (XLK) 4.4% dip over the same period.

www.barchart.com

Despite better-than-expected Q2 2025 EPS of $3.23 and revenue of $69.6 billion on Jan. 29, Microsoft shares dropped 6.2% the next day because of weaker Q3 revenue guidance of $67.7 billion - $68.7 billion, below the consensus. Microsoft’s Intelligent Cloud segment revenue of $25.5 billion fell short of analyst estimates, and management highlighted ongoing capacity constraints and execution challenges. Higher-than-anticipated "other expenses," including an impairment charge related to its investment in Cruise, further pressured sentiment.

Analysts' consensus view on Microsoft stock remains bullish, with a "Strong Buy" rating overall. Out of 45 analysts covering the stock, 38 recommend a "Strong Buy," four  "Moderate Buys," and three "Holds." As of writing, MSFT is trading below the average analyst price target of $505.78.