MSFT Stock Soars $30 on Microsoft Q1 Cloud Beat, as Azure Fuels Optimism
MSFT's stock rose more than 6% after hours trading as investors reacted well to the company's strong growth in cloud sales.
Quick overview
- Microsoft's stock surged over 6% in after-hours trading following a strong earnings report for Q3 2025, driven by robust cloud revenue growth.
- The Intelligent Cloud segment generated approximately $26.1 billion in revenue, marking an 18% year-over-year increase and reinforcing Microsoft's competitive position in the cloud market.
- Microsoft reported total revenue of $70.1 billion, exceeding analysts' expectations, with net income rising 18% to $25.8 billion.
- The company's ongoing investments in AI, particularly through tools like Microsoft 365 Copilot, are seen as key long-term growth drivers.
MSFT’s stock rose more than 6% after hours trading as investors reacted well to the company’s strong growth in cloud sales.
Strong Reversal in Microsoft Stock Following Earnings Beat
Microsoft (MSFT) shares staged a significant rally following the release of its fiscal Q3 2025 earnings (Q1 of the calendar year), posted after the close of U.S. markets on Wednesday, April 30. The day began with broader market weakness, and Microsoft initially followed suit by trading lower. However, by the end of the session, the stock had recovered and closed higher—setting the stage for an even sharper move after the earnings results came out.
Before the report, MSFT had been on a long-term bullish path, peaking in July 2024 at $468.35. That momentum was interrupted in late January, when the stock entered a deep correction, falling over 25% to reach $344 by early April. Technical support held at the 200-week simple moving average (SMA), halting the slide and allowing for a partial recovery.
MSFT Stock Chart Weekly – Finally Above the 100 SMA 
Despite bullish sentiment, MSFT faced resistance around the 100-week SMA, near the $390 mark. That ceiling was finally breached in today’s after-hours trade, with the stock breaking above $400 following the financial update.
Microsoft Cloud Momentum Powers Results
The highlight of the quarter was Microsoft’s Intelligent Cloud segment, which continues to be the central engine of growth. The division generated an estimated $26.1 billion in revenue, a year-over-year gain of around 18%. This performance reinforces Azure’s critical role in the global cloud computing landscape and underscores Microsoft’s competitive position against rivals like Amazon AWS and Google Cloud.
Investors responded enthusiastically to these numbers, as robust cloud growth not only beat expectations but also suggested enduring enterprise demand, even in a cautious economic climate.
AI Strategy Under Watch
Beyond cloud infrastructure, Microsoft’s investments in artificial intelligence are drawing increasing attention. Its flagship AI tool, Microsoft 365 Copilot, has been gradually rolled out across its suite of productivity apps, signaling a shift toward embedded AI in day-to-day software use. The market continues to view Microsoft’s expanding AI footprint as a long-term growth catalyst that could further widen its competitive moat.
Microsoft Q3 FY2025 Earnings – Highlights
Revenue Performance:
- Microsoft reported fiscal Q3 2025 revenue of $70.1 billion, marking a 13% year-over-year increase, and beating analysts’ expectations of $68.42 billion.
Net Profit Growth:
- Net income reached $25.8 billion, representing an 18% jump from the same quarter last year, showcasing improved operational efficiency and stronger margins.
Cloud Segment Leads Growth:
- Microsoft Cloud revenue surged by 20% year-over-year, hitting $42.4 billion. This reaffirms the company’s dominant position in enterprise cloud services, especially through Azure, Office 365, and Dynamics.
Outperformance vs Expectations:
- The company’s results exceeded Wall Street projections, driven largely by demand for cloud-based solutions and sustained enterprise IT spending.
Azure Momentum:
- Though specific Azure figures were not disclosed in the summary, past trends suggest Azure continued to grow at a strong double-digit rate, contributing significantly to overall cloud revenue.
Broader Business Context:
- Microsoft’s diversified product base — including AI-integrated tools, LinkedIn, and gaming via Xbox and Activision — adds resilience to its topline and positions the company well for long-term digital transformation trends.
Microsoft’s Q3 FY2025 results not only beat expectations but also underline the company’s successful pivot toward cloud-first revenue streams. With Microsoft Cloud delivering 20% annual growth and now comprising the majority of total sales, the tech giant is firmly cementing its role as a foundational player in global enterprise infrastructure. The double-digit gains in both revenue and net income signal continued strength in execution despite broader macroeconomic uncertainties.
Conclusion
Microsoft’s strong cloud-led Q3 results have reignited bullish sentiment, pushing its stock above key technical resistance. The company’s ongoing dominance in Azure and growing AI capabilities have reassured investors about the durability of its growth strategy. With MSFT now back above $400, momentum appears to be shifting decisively in favor of the bulls as the company leans further into cloud and AI innovation.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Related Articles
Comments
Sidebar rates
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals