Microsoft CEO Satya Nadella speaks at an event commemorating the 50th anniversary of the company at Microsoft headquarters in Redmond, Washington, on April 4, 2025.
David Ryder
Microsoft shares rose more than 6% in extended trading on Wednesday after the company reported better-than-expected quarterly results.
Here’s how the company performed in comparison with LSEG consensus:
- Earnings per share: $3.46 vs. $3.22 expected
- Revenue: $70.07 billion vs. $68.42 billion expected
Microsoft’s revenue grew 13% year over year in the quarter, which ended on March 31, according to a statement. Net income, at $25.82 billion, was up from $21.94 billion a year ago.
The company said Azure revenue grew 33%, with 16 points of the growth associated with AI. Analysts polled by StreetAccount and CNBC had anticipated 30.3% and 29.7% Azure growth, respectively.
While earnings and revenue topped estimates, those results are backward looking. President Donald Trump’s sweeping tariffs were announced in early April, and investors will be focused on commentary on the upcoming earnings call for a sense of their likely impact on results this quarter and for the rest of the year.
During the quarter, which ended on March 31, Microsoft announced an adjustment to its relationship with key AI partner OpenAI. The company said it would have a right of first refusal when OpenAI wants new computing capacity, but won’t always have to deliver it. On the same day, OpenAI announced the Stargate AI infrastructure project alongside Oracle and SoftBank at the White House.
Executives will issue guidance and discuss the results on a call with analysts starting at 5:30 p.m. ET.
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