Is MSFT's EPS growth sustainable beyond Q3 2025?

**Microsoft's EPS growth appears sustainable beyond Q3 2025**, based on several key factors:

1. **Consistent Financial Performance**: Microsoft has demonstrated strong financial performance in recent quarters, with revenue and earnings growth rates that indicate a robust business model. The company's revenue growth rate of 12.27% and net income growth rate of 10.23% reflect its ability to sustain growth beyond Q3 2025.

|code|Ticker|Name|Date|Net Income YoY|market_code|
|---|---|---|---|---|---|
|MSFT|MSFT.O|Microsoft|2024 Q3|19.89179736597628|185|
|MSFT|MSFT.O|Microsoft|2024 Q4|9.735570937702304|185|
|MSFT|MSFT.O|Microsoft|2025 Q1|10.659010362926741|185|
|MSFT|MSFT.O|Microsoft|2025 Q2|10.233196159122086|185|

|code|Ticker|Name|Date|Total Revenue YoY|market_code|
|---|---|---|---|---|---|
|MSFT|MSFT.O|Microsoft|2024 Q3|17.028964943148495|185|
|MSFT|MSFT.O|Microsoft|2024 Q4|15.195144957198028|185|
|MSFT|MSFT.O|Microsoft|2025 Q1|16.04472990427659|185|
|MSFT|MSFT.O|Microsoft|2025 Q2|12.273460174137375|185|

|code|Ticker|Name|Date|Diluted EPS YoY|market_code|
|---|---|---|---|---|---|
|MSFT|MSFT.O|Microsoft|2024 Q3|19.99999999999999|185|
|MSFT|MSFT.O|Microsoft|2024 Q4|9.66542750929369|185|
|MSFT|MSFT.O|Microsoft|2025 Q1|10.367892976588616|185|
|MSFT|MSFT.O|Microsoft|2025 Q2|10.238907849829344|185|

2. **Strategic Investments**: Microsoft's strategic investments in AI and cloud infrastructure are expected to drive future growth. The company's significant investment in AI is already bearing fruit, with AI services contributing to the growth of its Azure and other cloud services. These investments are likely to continue supporting earnings growth in the coming quarters.
3. **Market Position and Innovation**: Microsoft's strong market position in cloud computing and AI, coupled with its ability to offer end-to-end solutions, positions it well for continued growth. The company's innovation in AI applications and infrastructure is expected to drive both top-line and bottom-line growth in the coming years.
4. **Analyst Confidence**: Analysts have revised their earnings estimates upward, reflecting growing confidence in Microsoft's strategy and the sustainability of its EPS growth. This optimism is supported by the company's track record of delivering strong earnings results and the potential for further growth in the AI and cloud segments.
5. **Long-term Growth Projections**: The Zacks Consensus Estimates suggest analysts are expecting earnings of $13.08 per share for fiscal year 2026, marking a change of +10.85% from last year. This projection indicates that Microsoft's EPS growth is expected to be sustainable in the foreseeable future.

In conclusion, Microsoft's EPS growth is likely to be sustainable beyond Q3 2025, given the company's strong financial performance, strategic investments, market position, and analyst confidence.