Microsoft (MSFT) reported $26.8 billion in revenues for its Intelligent Cloud segment in Q3 of fiscal 2025, reflecting a 21% year-over-year increase, driven by a 33% surge in Azure and other cloud services. The company plans to invest $80 billion in AI-enabled data centers globally and is committing $3 billion to enhance Azure’s infrastructure in India over the next two years.
Microsoft spent $16.7 billion on cloud and AI infrastructure in Q3 FY2025. For Q4 FY2025, revenues for the Intelligent Cloud segment are projected between $28.75 and $29.05 billion, with Azure revenue growth expected at 34-35%. The Zacks Consensus Estimate for this segment stands at $28.9 billion, a 1.5% increase from the previous year.
Microsoft faces competition from Alphabet (GOOGL) and Oracle (ORCL), with Alphabet’s Google Cloud expected to grow at a CAGR of 15.8% from 2024 to 2027, and Oracle projecting 26-30% growth in Q1 FY2026. Microsoft shares have gained 18.1% year-to-date, outperforming industry benchmarks.
