Microsoft (MSFT) reported $76.44 billion in revenue for the quarter ended June 2025, representing a year-over-year increase of 18.1%. EPS of $3.65 for the same period compares to $2.95 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $73.71 billion, representing a surprise of +3.7%. The company delivered an EPS surprise of +8.96%, with the consensus EPS estimate being $3.35.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Microsoft performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Percentage Change in Revenue Y/Y: 18% compared to the 13.9% average estimate based on 10 analysts.
- Intelligent Cloud - Percentage Change in Revenue Y/Y: 26% versus the eight-analyst average estimate of 19.2%.
- More Personal Computing - Percentage Change in Revenue Y/Y: 9% versus the eight-analyst average estimate of -0.3%.
- Productivity and Business Processes - Percentage Change in Revenue Y/Y: 16% versus the eight-analyst average estimate of 12%.
- Revenue- More Personal Computing: $13.45 billion compared to the $12.6 billion average estimate based on 11 analysts. The reported number represents a change of -15.4% year over year.
- Revenue- Intelligent Cloud: $29.88 billion versus $28.94 billion estimated by 11 analysts on average. Compared to the year-ago quarter, this number represents a +4.8% change.
- Revenue- Productivity and Business Processes: $33.11 billion versus the 11-analyst average estimate of $32.15 billion. The reported number represents a year-over-year change of +63%.
- Revenue by product and service offerings- Dynamics products and cloud services: $2.14 billion versus $2.05 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +24.3% change.
- Revenue by product and service offerings- Windows and Devices: $4.33 billion compared to the $3.88 billion average estimate based on four analysts. The reported number represents a change of -33.3% year over year.
- Revenue by product and service offerings- Search and news advertising: $3.59 billion versus $3.53 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +13.3% change.
- Revenue by product and service offerings- Enterprise and partner service: $1.99 billion versus the four-analyst average estimate of $2 billion. The reported number represents a year-over-year change of +6.5%.
- Revenue by product and service offerings- Server products and cloud services: $27.88 billion versus $26.76 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +4.7% change.
View all Key Company Metrics for Microsoft here>>>
Shares of Microsoft have returned +4.2% over the past month versus the Zacks S&P 500 composite's +3.4% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
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Microsoft Corporation (MSFT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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