Microsoft conference call: AI demand exceeded expectations, capacity may be limited after June, tariffs were mentioned only once, and the period of economic pressure coincides with the acceleration of Cloud Computing penetration.
Microsoft stated that this quarter's Azure exceeded expectations mainly due to non-AI services, with excess contributions from the AI segment coming from the early delivery of some GPU capacities; unexpected AI demand may lead to capacity tightness after June, and this year will continue to invest 80 billion dollars in Datacenter construction; historical experience shows that periods of economic pressure coincide with accelerated Cloud Computing penetration.
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Earnings Call Summary | Microsoft(MSFT.US) Q3 2025 Earnings Conference
Microsoft Anticipates $32.35B in Productivity and Business Processes Revenue for Q4 2025 Driven by AI and Cloud Demand
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Trade negotiations are expected to support a major rebound in the U.S. stock market, with the S&P rising for seven consecutive days, Microsoft and Meta jumping after hours, and Crude Oil Product experiencing its largest monthly drop in over three years.
The S&P and Dow Jones continue to hit new highs over the past four weeks, but have declined for three consecutive months. Tesla fell over 3% but rose nearly 9% in April; Super Micro Computer and Snap both dropped over 10%. After the U.S. GDP report, the two-year U.S. Treasury yield reached a new three-week low, while Gold narrowed most of its losses, marking a two-day decline but has increased for four months. The USD has fallen for four months; the Euro achieved its largest monthly increase in over three years; Bitcoin rose over 10% in April. During the session, Crude Oil Product fell 4%, and Copper dropped over 7%.
Live Replay: Microsoft Q3 FY2025 Earnings Conference Call
Microsoft's Earnings Reports exceeded expectations across the board, with strong growth in Cloud Computing Business, resulting in a post-market stock price surge of over 8%.
①Microsoft's revenue for the third quarter of the 2025 fiscal year was 70.07 billion USD, a year-on-year increase of 13%, exceeding the Analyst's expectation of 68.42 billion USD; ②The revenue for the Azure Cloud Computing division grew by 33%, surpassing the market expectation of 29%, with the Intelligent Cloud division's revenue at 26.8 billion USD, exceeding the expectation of 26.17 billion USD.
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Microsoft GAAP EPS of $3.46 Beats by $0.24, Revenue of $70.06B Beats by $1.62B