How to Trade Microsoft After Fiscal Q3 2025 Earnings Beat

Last week, Microsoft announced earnings for its fiscal third quarter which beat expectations. Keep reading to learn more about the recent earnings report and to find out what analysts are forecasting for the stock in the months ahead.

This material is for informational purposes only and not financial advice. Consult a financial advisor before making investment decisions.

• The Invest.MT5 account allows you to buy real stocks and shares from some of the largest stock exchanges in the world.
• Risk Warning: Past performance is not a reliable indicator of future results or future performance. All trading is high risk, and you can lose more than you risk on a trade. Never invest more than you can afford to lose as some trades will lose and some trades will win. Start small to understand your own risk tolerance levels or practice on a demo account first to build your knowledge before investing.
• Trading is not suitable for everyone. Trading is highly speculative and carries a significant risk of loss. While it offers potential opportunities, it also involves high volatility, and leveraged trading can amplify both gains and losses. Retail investors should fully understand these risks before trading.

Microsoft Fiscal 2025 Q3 Performance 

Here are some of the key highlights from Microsoft’s fiscal 2025 third quarter earnings:

• Earnings per share (EPS): $3.46 vs $3.22 expected  
• Revenue: $70.07 billion vs $68.42 billion expected  
• Azure and other cloud services revenue soared 33%  

Microsoft’s earnings beat analyst estimates on the top and bottom lines, with revenue and EPS growing 13% and 18% year on year respectively. 

Microsoft Cloud continued to power the tech giant’s growth, with quarterly revenue rising 20% to $42.4 billion. Particularly impressive was ‘Azure and other cloud services’ revenue which soared 33% year on year, with 16 points of this growth attributed to Artificial Intelligence (AI) services. 

Furthermore, despite economic uncertainty, Microsoft issued strong guidance for the current quarter, which also topped analyst expectations. Microsoft anticipates fiscal Q4 revenue in the range of $73.15 billion and $74.25 billion, compared to the analyst consensus of $72.26 billion.  

Azure and other cloud services is expected to post another robust quarter, with revenue anticipated to grow by 34% to 35% in constant currency. 

These strong results and the better-than-expected outlook for the current quarter led to Microsoft’s share price jumping in the following sessions. However, despite the positive numbers, the current economic outlook remains somewhat unclear, largely due to uncertainty surrounding US tariffs. Microsoft is unlikely to be immune to an economic slowdown, which, if it materialises, could see consumers and businesses cut back on spending.

Moreover, despite large investments, Microsoft still appears to be struggling to meet growing demand for AI services. On its earnings call, CFO Amy Hood noted that "we now expect to have some AI capacity constraints beyond June”.

Microsoft Stock Forecast - What do the Analysts Say?

According to 34 analysts polled by TipRanks for a Microsoft stock forecast in the past 3 months, there are currently 30 buy, 4 hold and 0 sell ratings on the stock. The highest price level for a Microsoft stock forecast is $600.00 with the lowest price target at $470.00.  

The average price target for a Microsoft stock forecast is $506.31.

An Example Trading Idea for the Microsoft Stock Price

The following trading examples are for educational purposes only and do not constitute investment advice. Investors should conduct independent research before making trading decisions.

An example trading idea for the Microsoft share price could be as follows:

• Buy the stock on a break above $450.00 to allow for volatility.
• Target just below the highest analyst price target of $506.00.
• Keep your risk small at a maximum of 5% of your total account.
• Time Line = 1 – 12 months
• If you buy 10 Microsoft shares:
  • If target is reached = $560.00 potential profit [($506.00 - $450.00) * 10 shares].

Remember that markets go up and down. In fact, the stock price may even go much further down, especially due to current uncertainty surrounding US tariffs.

It is important to exercise good risk management and always know how much you could potentially lose on a trade and the risks involved, as well as the costs.

With the Admiral Markets Invest.MT5 account, you can buy and sell US stocks with a commission from $0.02 per share. This means buying 10 shares in Microsoft stock would result in a commission of $0.20 ($0.02 * 10 shares) for executing a per-side transaction.

However, there is a minimum transaction fee of $1. So, the example trading idea above would result in a commission of $1 overall.

How to Buy Microsoft Stock in 4 Steps

With Admiral Markets, you can buy shares in US companies like Microsoft with a commission from $0.02 per share and a minimum commission of $1.  

• Open an account with Admiral Markets and log in to the dashboard. 
• Click on Trade or Invest on one of your live or demo accounts to open the web platform. 
• Search for your stock in the search window at the top. 
• Create a new order and input your entry, stop-loss and take profit levels.

Do You See the Microsoft Stock Price Moving Differently?

If you believe there is a higher chance the share price of Microsoft will move lower, then you can also trade short using CFDs (Contracts for Difference). However, these have higher associated risks and are not suitable for all investors. Learn more about CFDs in this How to Trade CFDs article.

INFORMATION ABOUT ANALYTICAL MATERIALS:   

The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admiral Markets' investment firms operating under the Admiral Markets trademark (hereinafter “Admiral Markets”). Before making any investment decisions please pay close attention to the following:          

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• The Analysis is prepared by an analyst (hereinafter “Author”). The Author, Roberto Rivero, is a contractor for Admiral Markets. This content is a marketing communication and does not constitute independent financial research."         
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