🎙️ Microsoft Q3 FY25 – Cloud Power, AI Scale, and Copilot Momentum

📅 Earning Release : April 30, 2025
🏢 Company: Microsoft Corporation (MSFT)
💰 Revenue: $70.1B (+13% YoY)
🧠 AI & Cloud: Driving massive growth and future demand

🔥 Episode Summary:
In this episode of Know What You Are Investing, we unpack Microsoft’s stellar Q3 FY25 earnings report and the executive insights that highlight the tech giant’s expanding leadership in cloud computing, AI infrastructure, and enterprise software.

💡 Tune in as we explore:

• 🌩️ Microsoft Cloud Revenue hits a record $42.4B

• 🤖 Azure’s surprising strength in non-AI services

• 💼 Massive enterprise cloud migrations & OpenAI commitments

• 🧱 Aggressive AI infrastructure buildouts and data center expansion

• 🧑‍💻 Soaring adoption of Copilot, GitHub Copilot & AI agent tools

• 📊 Microsoft 365, Dynamics 365, and LinkedIn growth

• 🎮 Gaming, Search, and Windows updates

• 🔐 Big moves in Security, with over 1.4M customers

📌 Key Takeaways:

• Revenue: $70.1B (+13% YoY), EPS: $3.46 (+18%)

• Free cash flow: $20.3B, Operating income: +16%

• Commercial bookings and RPO set new highs, driven by strategic cloud commitments

• Cloud revenue grew 20% YoY, surpassing $42B

• Gross margin stable at 69%, despite AI infra scaling

• Azure revenue up 33%, with non-AI services leading the outperformance

• AI services still added 16 percentage points to growth

• Azure powers workloads like SAP, Oracle, PostgreSQL, and Cosmos DB

• Foundry used by 70K+ enterprises, processed 100T+ tokens

• GitHub Copilot: 15M users (+4x YoY)

• Microsoft 365 Copilot usage up 3x, record seat growth

• Power Platform: 56M monthly users, +27% YoY

• Over 1M custom agents created via Copilot Studio this quarter!

• $21.4B in CapEx this quarter; 10 new data centers across 4 continents

• GPU dock-to-lead time cut by 20%, AI performance up 30%

• Cost per token reduced by over 50%

• Some AI capacity constraints expected post-June 2025

• 84T daily threat signals power Security Copilot

• Defender, Entra, and Purview reinforced for AI governance

• 900M+ active users on Entra

🎯 Segment Highlights:

• 💼 Productivity & Business Processes: $29.9B (+10%)

• ☁️ Intelligent Cloud: $26.8B (+21%), led by Azure

• 💻 More Personal Computing: $13.4B (+6%)

• 🎯 LinkedIn: Strong growth in marketing solutions

• 🎮 Gaming: Cloud gaming hits 150M hours played

• 🔎 Search & News Advertising: +21% revenue ex-TAC

📈 Outlook (Q4 FY25):

• More AI capacity demand anticipated 📦

• CapEx to grow sequentially 💸

• Commercial cloud: +20% expected 📊

• Azure: +34–35% in constant currency 📶

• Focus on margin improvement through software optimization 🧠

🎧 Whether you're an investor, tech enthusiast, or industry insider, this episode breaks down what makes