Microsoft (MSFT) reported $81.27 billion in revenue for the quarter ended December 2025, representing a year-over-year increase of 16.7%. EPS of $4.14 for the same period compares to $3.23 a year ago.
The reported revenue represents a surprise of +1.3% over the Zacks Consensus Estimate of $80.23 billion. With the consensus EPS estimate being $3.88, the EPS surprise was +6.84%.
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 Y/Y (GAAP)- More Personal Computing: -3% versus the 10-analyst average estimate of -2.6%.
- Percentage Change Y/Y (GAAP)- Intelligent Cloud: 29% versus the 10-analyst average estimate of 26.9%.
- Percentage Change Y/Y (GAAP)- Productivity and Business Processes: 16% versus 13.8% estimated by 10 analysts on average.
- Percentage Change Y/Y (GAAP)- Revenue: 17% versus the 10-analyst average estimate of 15.1%.
- Percentage Change Y/Y (GAAP)- Microsoft 365 Commercial cloud: 17% compared to the 15% average estimate based on four analysts.
- Percentage Change Y/Y (GAAP)- Azure and other cloud services: 39% versus the three-analyst average estimate of 38.4%.
- Percentage Change Y/Y (GAAP)- Windows OEM and Devices: 1% versus the three-analyst average estimate of -5%.
- Revenue- Productivity and Business Processes: $34.12 billion compared to the $33.49 billion average estimate based on 10 analysts. The reported number represents a change of +15.9% year over year.
- Revenue- Intelligent Cloud: $32.91 billion compared to the $32.41 billion average estimate based on 10 analysts. The reported number represents a change of +28.8% year over year.
- Revenue- More Personal Computing: $14.25 billion compared to the $14.27 billion average estimate based on 10 analysts. The reported number represents a change of -2.7% year over year.
- Revenue- Service and other: $64.82 billion compared to the $62.24 billion average estimate based on two analysts. The reported number represents a change of +21.4% year over year.
- Revenue- Product: $16.45 billion versus the two-analyst average estimate of $17.86 billion. The reported number represents a year-over-year change of +1.4%.
View all Key Company Metrics for Microsoft here>>>
Shares of Microsoft have returned -1.4% over the past month versus the Zacks S&P 500 composite's +0.8% 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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