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Microsoft Q3 Earnings Surge on Azure and AI Growth, Lifting Market Cap to $2.9 Trillion

The tech giant outperformed expectations with 13% revenue growth, driven by a 33% rise in Azure sales and disciplined capital spending.

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Overview

  • Microsoft reported Q3 FY2025 revenue of $70.1 billion, up 13% year-on-year, and net profit of $25.8 billion, a rise of 18%.
  • Azure cloud platform revenues grew 33%, with nearly half of the growth attributed to AI services, highlighting the company's strategic focus on AI integration.
  • Capital expenditures fell to $21.4 billion, marking the first quarterly decline in over two years, reflecting prudent investment management.
  • The company issued optimistic Q4 revenue guidance of up to $74.25 billion, surpassing the $64.7 billion recorded in the same period last year.
  • Microsoft's stock surged 6.93% in after-hours trading, boosting its market capitalization to $2.9 trillion, solidifying its position as the world's second-most valuable company.