Microsoft delivered an above-average performance in the first quarter of 2025, which, depending on the reporting designation, is also referred to as the third quarter of the fiscal year 2025. The results placed both profit and revenue significantly above analyst expectations, underscoring the company’s stable market position. These results provide important impetus for the entire technology sector.
Key Financial Metrics
- Earnings Per Share (EPS): $3.46 vs. expected $3.23.
- Revenue: $70.1 billion (+13% compared to the previous year), above the forecast of about $68.4–68.53 billion.
- Net Income: Increased by 18% to $25.8 billion.
Drivers of Growth
The positive development was significantly supported by the following areas:
- Cloud Services: Azure revenues increased by 33%, with AI-related services accounting for nearly half of this growth.
- AI Innovations: New technologies such as the Majorana One quantum computing initiative were highlighted.
Market Reaction
The Microsoft stock responded immediately with a price increase of up to 7.92% in after-hours trading, with various sources quoting prices between approximately $419 and $427. This reflects investor confidence in the company’s long-term strategy.
Implications for Investors
With these figures, Microsoft demonstrates a robust ability to translate AI and cloud technologies into profitable growth. This is a key signal for private investors to assess future opportunities in the tech sector. The consistent overperformance of expectations further highlights its potential as a stable building block in volatile market phases.