The earnings call highlights Microsoft's strong performance in cloud and AI services, with record commercial bookings and significant growth in AI and cloud revenue. However, there were challenges in Azure non-AI services and declines in gaming and on-premises server revenues. The sentiment is balanced with notable achievements in cloud and AI offset by specific underperformances.

Company Guidance

During the Microsoft Fiscal Year 2025 Second Quarter Earnings Conference Call, the company provided guidance that highlighted significant growth across various metrics. Microsoft Cloud revenue exceeded $40 billion for the first time, marking a 21% year-over-year increase. The AI business demonstrated remarkable performance, surpassing an annual revenue run rate of $13 billion with a 175% year-over-year growth. The company also reported strong commercial bookings, which increased by 67%, with commercial remaining performance obligations reaching $298 billion, reflecting a 34% rise. Microsoft 365 Commercial Cloud revenue grew by 16%, LinkedIn revenue increased by 9%, and Dynamics 365 revenue rose by 19%. The call also noted a 70% gross margin percentage for Microsoft Cloud and the successful expansion of data center capacity over the past three years, further supporting Microsoft's strategic focus on AI and cloud infrastructure.

Microsoft Cloud Revenue Surpasses $40 Billion

Microsoft Cloud revenue reached over $40 billion, growing 21% year-over-year, marking continued strength and growth in cloud services.

AI Business Annual Revenue Run Rate Hits $13 Billion

Microsoft's AI business surpassed an annual revenue run rate of $13 billion, growing 175% year-over-year, driven by enterprise-wide deployments of AI solutions.

Record Commercial Bookings

Commercial bookings increased 67%, or 75% in constant currency, significantly ahead of expectations, driven by large Azure commitments from OpenAI.

Growth in Microsoft 365 Copilot Adoption

Microsoft 365 Copilot saw accelerated customer adoption with a significant increase in seats and usage intensity, expanding seats by more than 10x over 18 months.

LinkedIn Premium Revenue Surpasses $2 Billion

LinkedIn Premium achieved over $2 billion in annual revenue, with subscriber growth increasing nearly 50% over the past two years.

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Microsoft (DE:MSF) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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DE:MSF Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Apr 29, 2025	2025 (Q3)	3.08 / -	2.803	―	―	―
Jan 29, 2025	2025 (Q2)	2.97 / 3.08	2.794	10.24% (+0.29)
Oct 30, 2024	2025 (Q1)	2.96 / 3.15	2.851	10.37% (+0.30)
Jul 30, 2024	2024 (Q4)	2.80 / 2.81	2.565	9.67% (+0.25)
Apr 25, 2024	2024 (Q3)	2.69 / 2.80	2.336	20.00% (+0.47)
Jan 30, 2024	2024 (Q2)	2.64 / 2.79	2.212	26.29% (+0.58)
Oct 24, 2023	2024 (Q1)	2.53 / 2.85	2.241	27.23% (+0.61)
Jul 25, 2023	2023 (Q4)	2.43 / 2.57	2.126	20.63% (+0.44)
Apr 25, 2023	2023 (Q3)	2.14 / 2.34	2.117	10.36% (+0.22)
Jan 24, 2023	2023 (Q2)	2.19 / 2.21	2.365	-6.45% (-0.15)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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DE:MSF Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Jan 29, 2025	€424.05	€396.85	-6.41%
Oct 30, 2024	€400.58	€374.69	-6.46%
Jul 30, 2024	€388.13	€383.86	-1.10%
Apr 25, 2024	€363.26	€379.99	+4.60%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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