Microsoft’s third-quarter fiscal 2025 results have exceeded expectations, driven by strong performance in its AI business and increased adoption of Copilot.
The company’s Azure cloud infrastructure unit has shown accelerating growth, contributing significantly to the positive earnings and revenue outcomes.
A key highlight of the earnings report was the substantial 33% increase in cloud spending, significantly influenced by advancements in artificial intelligence (AI) infrastructure.
Microsoft Corporation (NASDAQ: MSFT) is a global technology giant known for its software products, cloud services, and hardware. The company competes with other tech leaders like Amazon and Google in the cloud computing space. On May 1, 2025, Piper Sandler adjusted Microsoft’s stock rating to Neutral, maintaining a hold action with the stock priced at $429.69.
Microsoft’s third-quarter fiscal 2025 results have exceeded expectations, driven by strong performance in its AI business and increased adoption of Copilot. The company’s Azure cloud infrastructure unit has shown accelerating growth, contributing significantly to the positive earnings and revenue outcomes. This has led to a 9% surge in Microsoft shares, marking its best trading day in five years, as highlighted by CNBC.
The earnings report revealed a robust bottom line, with earnings per share reaching $3.46, surpassing the forecasted $3.22 by 7% and marking a 17% increase year-over-year. On the revenue front, Microsoft reported $70.07 billion, exceeding expectations by 2.2% and showing a 13% year-over-year growth. This impressive performance has effectively wiped out all the stock’s losses since February 2025.
A key highlight of the earnings report was the substantial 33% increase in cloud spending, which had been a concern for investors due to a previous unexpected decline. Notably, 16% of this increase was attributed to advancements in artificial intelligence (AI) infrastructure. This strong performance in cloud spending has been a significant factor in the stock’s recent recovery.
The current stock price of Microsoft is $429.78, reflecting an increase of 8.73% or $34.52. Today, the stock has fluctuated between a low of $428.22 and a high of $436.99. Over the past year, the stock has reached a high of $468.35 and a low of $344.79. Microsoft has a substantial market capitalization of approximately $3.19 trillion, with a trading volume of 34.43 million shares.
