Microsoft (MSFT) Surpasses Q1 Earnings and Revenue Estimates

Core Insights - Microsoft reported quarterly earnings of $4.13 per share, exceeding the Zacks Consensus Estimate of $3.65 per share, and showing an increase from $3.3 per share a year ago, resulting in an earnings surprise of +13.15% [1] - The company achieved revenues of $77.67 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 3.62% and up from $65.59 billion year-over-year [2] - Microsoft shares have increased approximately 28.6% year-to-date, outperforming the S&P 500's gain of 17.2% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $3.78, with projected revenues of $79.73 billion, and for the current fiscal year, the EPS estimate is $15.40 on revenues of $321.25 billion [7] - The estimate revisions trend for Microsoft was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Computer - Software industry, to which Microsoft belongs, is currently ranked in the top 37% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Intuit, another company in the same industry, is expected to report quarterly earnings of $3.10 per share, reflecting a year-over-year change of +24%, with revenues anticipated to be $3.76 billion, up 14.6% from the previous year [9]