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Microsoft Soars 8.16% on Cloud, AI Revenue Surge

Mover TrackerThursday, May 1, 2025 5:12 am ET
1min read

On May 1, 2025, Microsoft's stock surged by 8.16% in pre-market trading, reflecting a strong market response to its latest financial performance.

Microsoft's third fiscal quarter of 2025 showcased impressive results, driven by robust growth in its cloud and AI segments. The company reported a revenue of $700.7 billion, a 13% year-over-year increase, surpassing market expectations of $684.2 billion. Net income grew by 18% to $258.24 billion, with adjusted earnings per share at $3.46, exceeding the forecast of $3.21.

The Intelligent Cloud segment was a standout performer, generating $268 billion in revenue, a 21% increase year-over-year. Azure and other cloud services saw a remarkable 33% growth, highlighting the increasing demand for AI-powered cloud solutions. The Personal Computing segment also showed resilience, with revenue growing by 6% to $134 billion, driven by an 8% increase in Xbox content and services and a 21% surge in search and news advertising revenue.

Microsoft's continued investment in AI and cloud infrastructure is evident in its capital expenditure, which reached $167.5 billion for the quarter, a 53% increase year-over-year. This investment is aimed at expanding data centers and acquiring AI chips, reflecting the company's commitment to staying at the forefront of technological advancements. CEO Satya Nadella emphasized that cloud computing and AI are essential for businesses to enhance productivity, reduce costs, and accelerate growth.

Looking ahead, Microsoft's outlook remains optimistic. The company expects fourth-quarter revenue to range between $731.5 billion and $742.5 billion, with Azure cloud revenue projected to grow by 34% to 35%. Despite potential AI capacity constraints, Microsoft is poised to continue its strong performance, driven by its strategic investments in AI and cloud technologies.

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jvdr999
05/01
Microsoft's cloud and AI game is strong. Anyone else thinking of adding $MSFT to their long-term portfolio? 📈
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SpirituallyAwareDev
05/01
$MSFT is crushing it. Investing in AI and cloud is smart. Data centers and AI chips are key. 📈
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RedneckTrader
05/01
Anyone else see the potential in Microsoft's strategic moves? They're not just keeping up, they're racing ahead.
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acg7
05/01
I'm holding $MSFT. Strong fundamentals and good growth prospects. Part of my core portfolio, alongside $AAPL.
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A_Moron_In-Existence
05/01
Microsoft's AI move is genius, cloud game strong.
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Longjumping_Rip_1475
05/01
$MSFT outlook bullish, AI capacity constraints ain't scaring me.
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turkeychicken
05/01
Investing $167.5B? Microsoft's serious about AI dominance.
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stanxv
05/01
$MSFT's capital expenditure up 53%. Investing in AI chips and data centers shows they're serious about staying ahead.
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Accomplished-Bill-45
05/01
Search and news ad revenue up 21%. AI must be optimizing their strategies. Smart move for long-term gains.
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EX-FFguy
05/01
Cloud revenue projected to grow 34-35%. That's insane growth. Anyone else thinking of adding more before Q4 results?
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TuxForBux
05/01
@EX-FFguy Think it's sustainable?
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qw1ns
05/01
PC segment holding steady, search ad revenue bump 🤑
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MCU_historian
05/01
Nadella knows his stuff. Cloud and AI are future. Businesses need to adapt or risk falling behind.
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Comfortable_Corner80
05/01
Those capital expenditures tho... $167.5B! 🤯 Betting big on AI and cloud is paying off.
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6roke6oy6
05/01
"Microsoft's third-quarter report is like Jim Halpert walking into the office with a new car. 'What? Did I do that?' Yeah, you did, and everyone's jealous.
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covid_endgame
05/01
@6roke6oy6 Dude, Microsoft's earnings? It's like Dwayne "The Rock" Johnson showing up to a WWE match. "Can you smell what The Rock is cooking?" Yeah, it's a bull market, and everyone's riding the wave.
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LarryFromNYC
05/01
Satya's vision paying off, cloud and AI FTW.
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Parsnip
05/01
@LarryFromNYC Satya's doing great, but can AI sustain this hype?
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