Microsoft (NASDAQ:MSFT) delivered strong FY25 Q3 results, exceeding expectations on both revenue and earnings. Azure revenue grew 33% year-over-year, surpassing forecasts, with AI services continuing to drive growth. Non-AI contributions were also stronger than expected, bolstered by network effects across the broader cloud ecosystem. The strong commercial bookings reflected sustained enterprise demand and pointed to a healthy pipeline.
The company continued its aggressive infrastructure expansion, opening 10 new datacenters during the quarter to support rising cloud and AI demand. When asked about speculation regarding a potential pause in infrastructure spend, management offered limited detail but suggested a hybrid strategy may be adopted.
The tone of the earnings call was consistent with previous quarters—heavily promotional, with a focus on product mentions and high-level metrics often lacking deeper context. While it detracts slightly from the clarity of the update, the underlying business momentum remains strong.
For more details, key highlights, and commentary, check out the high-level earnings summary.
