$MSFT

Microsoft GAAP EPS of $4.27 beats by $0.22, revenue of $82.89B beats by $1.46B
Q3 GAAP EPS of $4.27 beats by $0.22.
Revenue of $82.89B (+18.3% Y/Y) beats by $1.46B.
Microsoft Cloud revenue was $54.5 billion and increased 29%
Revenue in Intelligent Cloud was $34.7 billion and increased 30%
Revenue in More Personal Computing was $13.2 billion and decreased 1%
Microsoft slides even as Q3 results top estimates
Microsoft (MSFT) shares fell 1.8% in extended trading on Wednesday even as the tech giant reported fiscal third-quarter results that were above Wall Street's forecast.
For the period ending March 31, Microsoft said it earned an adjusted $4.27 per share as revenue rose 18% year-over-year to $82.89B, or 15% in constant currency. Included in that was $34.7B from its Intelligent Cloud division, which consists of its Azure cloud unit. Microsoft said Azure revenue grew 40% year-over-year and 39% in constant currency.
Total cloud-related revenue was $54.5B for the period, while Productivity and Business Processes revenue came in at $35B. Included in that was a 19% year-over-year rise in Microsoft 365 Commercial cloud revenue (15% in constant currency); a 33% rise in Microsoft 365 Consumer cloud revenue (29% in constant currency); a 12% increase in LinkedIn revenue (up 9% in constant currency); and a 22% increase in Dynamics 365 revenue, or 17% in constant currency.
Revenue from More Personal Computing, which includes Xbox, Activision, Windows, and Microsoft Surface, for the period was $13.2B.
Analysts had expected the company to earn an adjusted $4.05 per share on $81.46B in revenue.
Seeking Alpha analyst Michael Del Monte said the results were “upbeat,” and with remaining performance obligations reaching $627B, “the cloud growth model remains intact.”
“We are focused on delivering cloud and AI infrastructure and solutions that empower every business to eval-max their outcomes in the agentic computing era,” said CEO and Chairman Satya Nadella. “Our AI business surpassed an annual revenue run rate of $37 billion, up 123% year-over-year.”
“We delivered results that exceeded expectations across revenue, operating income, and earnings per share, reflecting strong execution and growing demand for the Microsoft Cloud,” Microsoft CFO Amy Hood added.
The company will host a conference call at 5:30 p.m. EST to discuss the results. Microsoft generally provides guidance for the upcoming quarter on the call.
Earnings Snapshot: Microsoft tops estimates; Azure revenue up 40%