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Microsoft Soars 8.23% on Strong Q3 Earnings, AI Growth

Mover TrackerThursday, May 1, 2025 5:02 am ET

1min read

On May 1, 2025, Microsoft's stock rose by 8.23% in pre-market trading, reflecting strong investor confidence in the company's recent performance and future prospects.

Microsoft's third fiscal quarter of 2025 saw significant growth across multiple segments. The company reported a 13% increase in revenue to $701 billion, driven by a 21% growth in its Intelligent Cloud segment, which includes Azure. Azure's revenue grew by 33%, with AI services contributing 16 percentage points to this growth. The company's cloud business, microsoft Cloud, generated $424 billion in revenue, a 20% increase year-over-year. This strong performance was attributed to the continued demand for cloud services and AI infrastructure.

In the productivity and business processes segment, Microsoft 365 commercial cloud revenue grew by 12%, while LinkedIn's revenue increased by 7%. The company also saw a 6% growth in its More Personal Computing segment, with Windows OEM and device revenue growing by 3%. The strong performance in these segments was driven by the company's focus on innovation and its ability to meet the evolving needs of its customers.

Microsoft's CEO, Satya Nadella, highlighted the importance of cloud and AI in driving business growth. He stated that these technologies are essential for businesses to expand output, reduce costs, and accelerate growth. The company's continued investment in AI infrastructure and its commitment to innovation are expected to drive future growth.

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