Is MSFT's Q3 2025 EPS forecast signaling a new growth phase?

**Microsoft's Q3 2025 EPS forecast does not necessarily indicate a new growth phase.** Here's why: 1. **Consistent Growth**: Microsoft has consistently exceeded earnings expectations in recent quarters. Its Q2 2025 EPS of $3.23 surpassed analyst consensus expectations of $3.11, and its Q2 Non-GAAP EPS of $2.32 also beat expectations. 2. **Stable Financial Performance**: The company's financial performance has been stable, with strong revenue growth driven by cloud services and productivity tools. However, the growth rates have been moderate, with a 21% increase in cloud revenue and an 18% increase in intelligent cloud revenue. 3. **Market Position**: Microsoft's dominant market position in operating systems and productivity software is a key driver of its financial performance. The company's strategic focus on cloud computing and artificial intelligence is expected to fuel future growth. 4. **Earnings Forecast**: Analysts expect Microsoft's EPS to increase by 6.8% year-over-year to $3.13 in Q2 2025. For fiscal 2025, the EPS is forecasted at $12.92, representing a 9.5% increase from the previous year. These forecasts suggest a continuation of steady growth rather than a new growth phase. In conclusion, while Microsoft's consistent earnings beat and strong market position are positive signs, the current EPS forecast does not signal a new growth phase. Instead, it indicates a continuation of the company's existing growth trajectory.