Microsoft's Q4 revenue is expected to be $73.875 billion, adjusted net income is $25.239 billion, and adjusted EPS is $3.37, according to Bloomberg's consistent expectations.
Microsoft has scheduled its fiscal year 2025 fourth-quarter financial results announcement for Wednesday, July 30, 2025, after market close. AI is expected to drive earnings, with the company's agentic AI ramp up in its first inning.
Microsoft's Q4 revenue is expected to be $73.875 billion, adjusted net income is $25.239 billion, and adjusted EPS is $3.37, according to Bloomberg's consistent expectations.
Previous Quarter Review
Microsoft reported better-than-expected quarterly results, driven by its Azure cloud business, and issued surprisingly strong guidance
Here’s how the company performed in comparison with LSEG consensus:
Earnings per share: $3.46 vs. $3.22 expected
Revenue: $70.07 billion vs. $68.42 billion expected
Microsoft called for revenue in the range of $73.15 billion to $74.25 billion. The middle of the range was higher than LSEG’s $72.26 billion consensus. The company sees 34% to 35% in Azure growth at constant currency, compared with StreetAccount’s 31.5% consensus.
Management reiterated that capital expenditures will grow in the new fiscal year, though at a slower rate than the current 2025 fiscal year. The company’s implied operating margin of 43.35% was just shy of StreetAccount’s 43.5% consensus.
Revenue increased 13% year over year in the fiscal third quarter, which ended on March 31, according to a statement. Net income climbed 18% to $25.8 billion from $21.9 billion, or $2.94 per share, a year earlier.
Q4 Results Outlook
Microsoft's Q4 revenue is expected to be $73.875 billion, adjusted net income is $25.239 billion, and adjusted EPS is $3.37, according to Bloomberg's consistent expectations.
Microsoft has increased its per-share earnings relative to a year earlier for nine consecutive quarters, and Wall Street expects a tenth when the company reports results on July 30. Strength in artificial intelligence and spending on cloud computing among commercial clients remain the main sources of growth, analysts say.
AI
Microsoft's fiscal 4Q commentary could suggest a greater productivity boost from its use of AI tools, which can justify modest growth in head count over the next 12 months. This might also help offset some of the rising costs from increased AI-related investments, which Bloomberg analysts calculate could hurt operating margins by 100-150 bps in fiscal 2026. They anticipate management initiating a conservative outlook for double-digit sales growth in constant currency for fiscal 2026, given weak enterprise IT spending, while the 2025 metric might be closer to 14-15%.
Their suggests AI sales of $4-$4.5 billion, accounting for 15-16 percentage points of Azure growth in 4Q. Capital-spending comments will likely call for greater outlay on chips and hardware and renting more capacity, with 2026 spending likely around $100 billion.
Dan Ives of Wedbush Securities is perhaps even more bullish on Microsoft. He said in a note that Wall Street hasn’t yet priced in the company’s growth prospects from AI. Growth in Azure and Microsoft’s Intelligent Cloud unit should mean another strong result, Ives said.
“It has become crystal clear to us that the monetization opportunities around deploying AI in the cloud is a transformational opportunity,” Ives wrote. “We believe Microsoft is just hitting its next phase of monetization on the AI front.”
Wedbush maintained an Outperform rating and a $600 price target for Microsoft shares. In June, Wedbush Fund Advisers launched the Dan IVES Wedbush AI Revolution ETF, which includes Microsoft and the other Magnificent Seven stocks.
Azure Growth
The focus of Microsoft's Q4 report next Wednesday will be on its Azure cloud computing infrastructure business, which provides capacity for running AI applications.
Last quarter, Microsoft reported Azure revenue growth of 35% year over year in constant currency, topping analyst estimates for 31% growth. For fiscal Q4, Microsoft predicted Azure growth of 34% to 35% in constant currency.
"In our view, the investor bogey is for constant currency Azure growth of 36% for Q4 and guidance for a modest deceleration to 34% growth in Q1," UBS analyst Karl Keirstead said in a client note Tuesday.
Keirstead reiterated his buy rating on Microsoft stock and raised his price target to 600 from 500.
In a research note, Blakey reiterated an Overweight rating for the stock and boosted his price target to $581 from $512, after industry checks with two Microsoft cloud partners indicated a positive medium-term outlook fueled by AI and the company’s Azure cloud-computing platform.
Mizuho Securities analyst Gregg Moskowitz was similarly optimistic about Azure after the firm’s industry checks. He called Microsoft one of his favorite stocks to own ahead of tech companies’ coming earnings reports.
Microsoft is projecting 34% to 35% year-over-year growth in Azure revenue for the June quarter, and Moskowitz expects the company to hit the high end of that range, he wrote in a research note. Mizuho raised its price target for Microsoft shares to $540 from $500 and maintained an Outperform rating for the stock.