Tech Behemoth Microsoft Corp. (NASDAQ:MSFT) is preparing to report its third quarter 2025 results in its forecast for year-on-year increases in revenue and revenue. The company has recently leveraged its booming cloud business, rapidly expanding its AI capabilities and seamlessly integrates technology across products and services.
What should I look for?
Microsoft will report its third quarter results on Wednesday, April 30th at 4:05pm ET. Analysts following the software giant are bullish on forecasts, with consensus estimates that third-quarter revenues will increase by 10.6% to $68.444 billion. For each stock, net income is expected to rise by about 10% year-on-year to $3.22.
Microsoft stocks have been below the average 52-week price for almost three months. The final closing price is about 17% lower than its record high in July 2024. The recent drop in prices offers an opportunity to own this blue chip stock, which appears to have strong growth potential. Microsoft recently regained its position as the world’s largest company, surpassing Apple, which lost a major market capitalization after the government imposed new import duties on China.
Microsoft CEO Satya Nadella in his second quarter 2025 revenue call. “We continue to expand our data center capacity along both short-term and long-term demand signals. We have more than doubled the overall data center capacity over the past three years, adding more capacity last year than any other year in our history.
Strong Q2
In the second quarter, the company reported better revenue than expected, marking eight consecutive beats, but revenue exceeded its 10th consecutive quarter estimate. For the same period in 2024, revenue for the second quarter was $620 billion, compared to a total of $69.6 billion for the 22 quarter. Topline benefited from strong performance Intelligent Cloud Split. Net income rose to $241.1 billion or $3.23 per share in the December quarter, up from $21.87 billion or $2.93 per share in the same period last year.
Microsoft’s long-term outlook is driven by a growing presence in the cloud market, bringing tough competition to market leaders like Amazon Web Services. The mission-critical nature of software products makes it essential for many organizations. Moreover, the company is less exposed to tariff-related trade tensions than high-tech peers like Apple and Nvidia.
After a modest start to the week, MSFT picked up strength and maintained its momentum. On Friday, the stock traded low early in the session.