The earnings call presented a strong start to the fiscal year with significant revenue growth driven by cloud and AI innovations. However, there were challenges related to supply constraints impacting Azure and gross margin decreases due to AI infrastructure scaling.

Company Guidance

During Microsoft's Q1 2025 earnings call, the company provided robust guidance amidst impressive growth metrics. Microsoft Cloud revenue surged to $38.9 billion, marking a 22% increase, with AI-driven transformations contributing significantly as the company’s AI business is projected to exceed an annual revenue run rate of $10 billion next quarter. Azure and other cloud services reported a 34% growth in constant currency, driven by a 12-point contribution from AI services. Commercial bookings rose by 30%, fueled by an increase in $10 million-plus contracts for Azure and Microsoft 365, and a 27% increase in the portion recognized beyond the next 12 months. Operating expenses were controlled, rising by just 12%, while operating income increased by 14%, indicating margin expansion efforts are paying off. The company also highlighted a strong capital expenditure plan of $20 billion, with a focus on supporting long-term AI infrastructure growth, signaling confidence in sustained demand. Microsoft's guidance reflects a continued focus on strategic investments in AI and cloud capabilities while maintaining disciplined cost management.

Microsoft Cloud Revenue Growth

Microsoft Cloud exceeded $38.9 billion in revenue, marking a 22% increase year-over-year, driven by strong demand and long-term commitments.

AI Business Milestone

Microsoft's AI business is on track to reach a $10 billion annual revenue run rate next quarter, making it the fastest-growing business in the company's history.

Azure Growth

Azure revenue grew 33% and 34% in constant currency, with AI services contributing significantly to this growth.

Gaming Revenue Surge

Gaming revenue increased 43% and 44% in constant currency, driven by the Activision acquisition and strong performance in first- and third-party content.

M365 Commercial Cloud Revenue

M365 commercial cloud revenue increased 15% and 16% in constant currency, with growth driven by E5 and M365 Copilot.

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Microsoft (MSFT) 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

Daily Earnings Calendar >

MSFT Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Jan 29, 2025	2025 (Q2)	3.13 / -	2.93	―	―	―
Oct 30, 2024	2025 (Q1)	3.10 / 3.30	2.99	10.37% (+0.31)
Jul 30, 2024	2024 (Q4)	2.94 / 2.95	2.69	9.67% (+0.26)
Apr 25, 2024	2024 (Q3)	2.83 / 2.94	2.45	20.00% (+0.49)
Jan 30, 2024	2024 (Q2)	2.77 / 2.93	2.32	26.29% (+0.61)
Oct 24, 2023	2024 (Q1)	2.65 / 2.99	2.35	27.23% (+0.64)
Jul 25, 2023	2023 (Q4)	2.55 / 2.69	2.23	20.63% (+0.46)
Apr 25, 2023	2023 (Q3)	2.24 / 2.45	2.22	10.36% (+0.23)
Jan 24, 2023	2023 (Q2)	2.29 / 2.32	2.48	-6.45% (-0.16)
Oct 25, 2022	2023 (Q1)	2.31 / 2.35	2.27	3.52% (+0.08)

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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MSFT Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Oct 30, 2024	$431.66	$405.54	-6.05%
Jul 30, 2024	$421.32	$416.76	-1.08%
Apr 25, 2024	$396.81	$404.05	+1.82%
Jan 30, 2024	$405.56	$394.63	-2.70%

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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