Microsoft Readies for Strong Q3 2025 Earnings Announcement

With a market capitalization of $2.9 trillion, Microsoft Corporation (MSFT), located in Redmond, Washington, stands as a leading technology provider globally. The company provides a diverse array of software, services, devices, and cloud solutions through its three main segments: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing.

Upcoming Earnings Announcement

Microsoft is set to report its fiscal Q3 2025 earnings results on Thursday, April 24. Analysts forecast that MSFT will report a profit of $3.20 per share, reflecting an 8.8% increase from $2.94 per share in the same quarter last year. Notably, the company has surpassed Wall Street’s earnings projections in each of the past four quarters. In Q2 2025, Microsoft’s earnings exceeded consensus EPS estimates by a margin of 3.9%.

Fiscal Year Projections

For fiscal 2025, analysts estimate that MSFT will report earnings per share of $13.06, indicating a growth of 10.7% from $11.80 in fiscal 2024. Looking ahead, EPS is expected to grow by 12.4% year-over-year, reaching $14.68 in fiscal 2026.

Stock Performance Overview

Over the past 52 weeks, Microsoft shares have declined 10.3%, underperforming the broader S&P 500 Index’s ($SPX) nearly 2% rise and the Technology Select Sector SPDR Fund’s (XLK) 4.4% dip during the same time frame.

Despite reporting better-than-expected Q2 2025 EPS of $3.23 and revenue of $69.6 billion on January 29, shares dropped by 6.2% the following day due to weaker Q3 revenue guidance of $67.7 billion to $68.7 billion, which fell short of consensus expectations. The Intelligent Cloud segment reported revenue of $25.5 billion, also below analyst estimates, while management cited ongoing capacity constraints and execution challenges. Furthermore, “other expenses,” including an impairment charge related to its investment in Cruise, added to the negative sentiment.

Analysts’ Consensus Outlook

The consensus among analysts regarding Microsoft Stock remains optimistic, with an overall rating of “Strong Buy.” Among 45 analysts tracking the Stock, 38 recommend a “Strong Buy,” four suggest “Moderate Buys,” and three indicate “Holds.” As of the time of writing, MSFT is trading below the average analyst price target of $505.78.

On the date of publication, Sohini Mondal did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data provided are for informational purposes only. For further information, please view the Barchart Disclosure Policy here.

 

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