Microsoft Corporation (MSFT) reported that in the third quarter of fiscal 2025, over 10,000 organizations utilized its Agent Service, leading to the creation of more than 1 million custom AI agents, a 130% increase quarter over quarter. The company processed over 100 trillion tokens during the quarter, a fivefold increase year over year. Revenue from Microsoft’s Intelligent Cloud segment reached $26.8 billion, up 21% year over year, contributing 37.9% to the total revenue, with Azure and cloud services growing 33% and AI services adding 16 percentage points to that growth.
In addition, Microsoft introduced the MU language model, which enhances the AI agent experience in Windows 11 Settings. This integration is expected to further drive usage of Azure’s AI tools. However, Microsoft faces increasing competition from Amazon’s AWS and Alphabet’s Google Cloud, both advancing their own agentic AI technologies.
For fiscal 2025, Microsoft’s earnings per share estimate is $3.35 for the fourth quarter and $13.36 for the full year, reflecting year-over-year growth. Year-to-date, MSFT shares have risen 17.7%, outperforming the Zacks Computer – Software industry growth of 13.5% and the broader technology sector’s growth of 4.5%.
