Overview

• Microsoft is set to release its Q3 FY25 earnings after market close on Wednesday, April 30, with analysts projecting $3.20 EPS and $68.4 billion in revenue, reflecting moderate year-over-year growth.
• Economic uncertainty, including tariff-related risks, has led to cautious enterprise spending, potentially impacting key revenue drivers like Azure cloud, Microsoft 365, and AI services.
• Azure's growth is expected to decelerate to 31% this quarter, down from 40% last quarter, as businesses adopt a more conservative approach to new cloud projects.
• Microsoft continues its aggressive infrastructure investment strategy, planning over $80 billion in cloud and AI capex this year, with $22.6 billion already spent in Q2, up 79% year-over-year.
• Despite a 7–8% year-to-date decline in its stock, Microsoft remains relatively resilient compared to peers, with analysts noting its AI and cloud focus as key long-term growth drivers.