Microsoft’s Q3 Earnings Preview: AI Bets and Growth Momentum in Focus

Microsoft Corporation (MSFT) gears up for its Q3 earnings release on October 29, with analysts anticipating a potential stock rally. Shares have climbed 23% year-to-date, lagging some Magnificent-7 peers but maintaining steady growth. A earnings beat could propel the stock beyond its current $520 mark toward new highs.

The company’s Q4 FY25 results set a high bar: $76.4B revenue (+18% YoY), $32.4B operating income (+23% YoY), and $3.65 EPS (+24% YoY). Consensus forecasts for the upcoming quarter match last quarter’s EPS of $3.65, up from $3.3 a year prior. Microsoft has surpassed earnings expectations for 10 consecutive quarters, each time driving the stock higher.

While trailing Alphabet and Meta in consumer-facing AI tools, Microsoft is doubling down on OS integration. Recent Copilot upgrades for Windows—including voice activation via "Hey Copilot"—signal its ambition to lead in enterprise AI. The market watches whether these investments will translate into another earnings surprise.