A Bullish Start to May? Microsoft and Meta Deliver Big Earnings Surprises, Stocks Face Off in Pre-Market Trading!

On May 1, 2025, Microsoft released its earnings report for Q3 of fiscal year 2025 — and it beat Wall Street expectations across the board.

Here are the highlights:

• Total revenue: $70.1 billion, up 13% year-over-year, exceeding analyst expectations of $68.4 billion.

• Net profit: $25.8 billion, up 18% year-over-year.

• Earnings per share (EPS): $3.46, well above the projected $3.22.

The most impressive part? Microsoft’s cloud revenue soared past $40 billion, marking a 20% increase. Even more striking, Azure cloud services revenue jumped by 33%, with AI-related services contributing around 16 percentage points of that growth. This underscores the rapid momentum of cloud computing and AI.

 

Other standout segments in Microsoft’s report include:

• Microsoft 365 commercial and consumer products: up 10%

• Search and news advertising: a stunning 21% increase in revenue

Pre-market, Microsoft’s stock surged over 8%, once again proving this earnings report was a strong positive catalyst. But as always with investing, profits only matter when you’ve locked them in — so remain cautious and informed.

Coincidentally, Meta also showed strong performance in pre-market trading, with its stock rising over 7%.

Meta’s key earnings figures include:

• Revenue: $42.31 billion, up 16% YoY, surpassing the expected $41.42 billion

• Net profit: $16.64 billion, up a remarkable 35% YoY

• Operating income: $17.55 billion, up 27%, with operating margin improving from 38% to 41%

Meta also reported impressive user engagement stats:

• Daily active users across platforms: 3.35 billion

• Threads monthly active users: 350 million

• Meta AI monthly active users: nearly 1 billion

Looking at the numbers from both Microsoft and Meta, it’s clear: this earnings season is a win for AI-driven companies. But the big question remains — what new opportunities still lie ahead in the AI revolution? Could we see the birth of new tech giants in the AI ecosystem?

 

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