Microsoft Corp. MSFT has been capitalizing on artificial intelligence (AI) business momentum and Copilot adoption alongside accelerating Azure cloud infrastructure expansion. Strong Office 365 Commercial demand has been propelling Productivity and Business Processes revenue growth. ARPU (average revenue per user) is increasing through E5 and M365 Copilot uptake across key segments.
MSFT delivered exceptional fourth-quarter fiscal 2025 results, which exceeded the Zacks Consensus Estimate across all key metrics, demonstrating the company's dominant position in the rapidly expanding cloud and AI markets. These robust results underscore Microsoft's successful execution of its cloud-first, AI-powered strategy and present a compelling investment opportunity for the rest of 2025.
For first-quarter fiscal 2026, the Zacks Consensus Estimate currently shows revenues of $75.38 billion, suggesting an increase of 14.9% year over year and EPS of $3.64, indicating an improvement of 10.3% year over year. The Zacks Consensus Estimate for current quarter earnings has improved 3.7% over the last 30 days.
For fiscal 2026 (ending June 2026), the Zacks Consensus Estimate currently shows revenues of $320.3 billion, suggesting an increase of 13.7% year over year and earnings per share of $15.32, indicating an improvement of 12.3% year over year. The Zacks Consensus Estimate for current-year earnings has improved 2.3% over the last 30 days.
For fiscal 2027 (ending June 2027), the Zacks Consensus Estimate currently shows revenues of $366.3 billion, suggesting an increase of 14.4% year over year and earnings per share of $17.89, indicating an improvement of 16.7% year over year. The Zacks Consensus Estimate for current-year earnings has improved 2.9% over the last 30 days.
The Zacks Consensus Estimate for long-term (3-5 years) EPS growth of MSFT is currently pegged at 14.9%, higher than the S&P 500's EPS growth rate of 12.8%.
Image Source: Zacks Investment Research
Microsoft delivered exceptional growth across its Azure, AI, and Copilot platforms during the fourth quarter of fiscal 2025, demonstrating its leadership in the AI transformation. Azure achieved remarkable scale, surpassing $75 billion in annual revenues with 34% growth, while expanding its global infrastructure to more than 400 datacenters across 70 regions. MSFT added more than two gigawatts of new capacity and made every Azure region AI-first, with all locations now supporting liquid cooling for enhanced performance and flexibility.