Core Insights - Microsoft reported $77.67 billion in revenue for the quarter ended September 2025, marking an 18.4% year-over-year increase and exceeding the Zacks Consensus Estimate by 3.62% [1] - The earnings per share (EPS) for the quarter was $4.13, up from $3.30 a year ago, representing a surprise of 13.15% over the consensus estimate of $3.65 [1] Revenue Performance - Overall revenue increased by 18% year-over-year, surpassing the average analyst estimate of 14.1% [4] - Revenue from Productivity and Business Processes grew by 17%, compared to the 14.2% average estimate [4] - Intelligent Cloud revenue rose by 28%, exceeding the 25.6% average estimate [4] - More Personal Computing revenue increased by 4%, against an average estimate of -3.4% [4] Segment Revenue Details - More Personal Computing revenue was $13.76 billion, above the average estimate of $12.72 billion, reflecting a year-over-year change of 4.4% [4] - Intelligent Cloud revenue reached $30.9 billion, compared to the average estimate of $30.26 billion, with a year-over-year increase of 28.3% [4] - Productivity and Business Processes generated $33.02 billion, exceeding the $32.35 billion estimate, representing a 16.6% year-over-year change [4] - Product revenue was $15.92 billion, slightly below the $16.08 billion estimate, with a year-over-year change of 4.3% [4] Revenue by Product and Service Offerings - Windows and Devices revenue was $4.55 billion, surpassing the $4.03 billion estimate [4] - Search and news advertising revenue reached $3.7 billion, compared to the $3.63 billion estimate, reflecting a 14.6% year-over-year increase [4] - Enterprise and partner service revenue was $2.02 billion, above the $1.99 billion estimate, with a 4.9% year-over-year change [4] - Server products and cloud services revenue was $28.87 billion, exceeding the $28.03 billion estimate, representing a 30.3% year-over-year increase [4]

Core Insights - Microsoft reported $76.44 billion in revenue for the quarter ended June 2025, marking an 18.1% year-over-year increase and an EPS of $3.65 compared to $2.95 a year ago, exceeding Zacks Consensus Estimates [1] Revenue Performance - Overall revenue increased by 18% year-over-year, surpassing the average estimate of 13.9% based on 10 analysts [4] - Intelligent Cloud revenue grew by 26%, exceeding the eight-analyst average estimate of 19.2% [4] - More Personal Computing revenue increased by 9%, compared to the eight-analyst average estimate of -0.3% [4] - Productivity and Business Processes revenue rose by 16%, above the eight-analyst average estimate of 12% [4] Segment Revenue Details - More Personal Computing revenue was reported at $13.45 billion, exceeding the $12.6 billion average estimate, representing a year-over-year decline of 15.4% [4] - Intelligent Cloud revenue reached $29.88 billion, compared to the $28.94 billion estimate, reflecting a 4.8% increase year-over-year [4] - Productivity and Business Processes generated $33.11 billion, surpassing the $32.15 billion estimate, with a significant year-over-year increase of 63% [4] - Dynamics products and cloud services revenue was $2.14 billion, exceeding the $2.05 billion estimate, showing a 24.3% year-over-year increase [4] - Windows and Devices revenue was $4.33 billion, above the $3.88 billion estimate, indicating a year-over-year decline of 33.3% [4] - Search and news advertising revenue was $3.59 billion, slightly above the $3.53 billion estimate, with a year-over-year increase of 13.3% [4] - Enterprise and partner service revenue was $1.99 billion, slightly below the $2 billion estimate, reflecting a year-over-year increase of 6.5% [4] - Server products and cloud services revenue was $27.88 billion, exceeding the $26.76 billion estimate, with a year-over-year increase of 4.7% [4] Stock Performance - Microsoft shares returned +4.2% over the past month, outperforming the Zacks S&P 500 composite's +3.4% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for near-term outperformance against the broader market [3]

Core Viewpoint - Analysts forecast Microsoft (MSFT) to report quarterly earnings of $3.35 per share, reflecting a year-over-year increase of 13.6%, with revenues expected to reach $73.71 billion, an increase of 13.9% compared to the previous year [1]. Earnings Estimates - The consensus EPS estimate for the quarter has remained unchanged over the past 30 days, indicating a reassessment of projections by covering analysts [1][2]. Revenue Projections - Analysts expect 'Revenue- More Personal Computing' to be $12.60 billion, a decrease of 20.7% year over year [4]. - 'Revenue- Intelligent Cloud' is projected to reach $28.94 billion, showing a slight increase of 1.5% year over year [4]. - 'Revenue- Productivity and Business Processes' is anticipated to be $32.15 billion, reflecting a significant increase of 58.2% from the year-ago quarter [4]. Specific Revenue Metrics - 'Revenue- Windows' is expected to be $3.88 billion, indicating a decline of 40.2% year over year [5]. - 'More Personal Computing- Revenue from Gaming' is projected at $5.29 billion, an increase of 5.3% from the previous year [5]. - 'More Personal Computing- Search and news advertising' is estimated to reach $3.53 billion, reflecting a year-over-year increase of 11.5% [6]. Percentage Change in Revenue - The consensus estimate for 'Percentage Change in Revenue Y/Y' stands at 13.9%, compared to 15.0% from the previous year [6]. - 'Intelligent Cloud - Percentage Change in Revenue Y/Y' is estimated at 19.2%, slightly up from 19.0% reported last year [7]. - 'Productivity and Business Processes - Percentage Change in Revenue Y/Y' is forecasted to be 12.0%, compared to 11.0% last year [7]. - 'More Personal Computing - Percentage Change in Revenue Y/Y' is projected at -0.3%, down from 14.0% reported last year [8]. Unearned Revenue Estimates - 'Long-term unearned revenue' is expected to be $3.50 billion, up from $2.60 billion reported last year [8]. - 'Short-term unearned revenue' is projected to reach $57.97 billion, slightly up from $57.58 billion reported in the same quarter last year [9]. Stock Performance - Microsoft shares have changed by +2.7% in the past month, compared to a +4.6% move of the Zacks S&P 500 composite [9].