Microsoft (MSFT) Q3 Earnings and Revenues Beat Estimates

Group 1: Earnings Performance - Microsoft reported quarterly earnings of $3.46 per share, exceeding the Zacks Consensus Estimate of $3.20 per share, and up from $2.94 per share a year ago, representing an earnings surprise of 8.13% [1] - The company posted revenues of $70.07 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.46%, compared to $61.86 billion in the same quarter last year [2] - Over the last four quarters, Microsoft has consistently surpassed consensus EPS and revenue estimates [2] Group 2: Stock Performance and Outlook - Microsoft shares have declined approximately 6.5% since the beginning of the year, while the S&P 500 has seen a decline of 5.5% [3] - The future performance of Microsoft’s stock will largely depend on management's commentary during the earnings call and the outlook for earnings estimates [4][6] - The current consensus EPS estimate for the upcoming quarter is $3.28 on revenues of $72.03 billion, and for the current fiscal year, it is $13.03 on revenues of $275.39 billion [7] Group 3: Industry Context - The Computer - Software industry, to which Microsoft belongs, is currently ranked in the top 31% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]