Compared to Estimates, Microsoft (MSFT) Q1 Earnings: A Look at Key Metrics

Microsoft (MSFT) reported $77.67 billion in revenue for the quarter ended September 2025, representing a year-over-year increase of 18.4%. EPS of $4.13 for the same period compares to $3.30 a year ago.The reported revenue represents a surprise of +3.62% over the Zacks Consensus Estimate of $74.96 billion. With the consensus EPS estimate being $3.65, the EPS surprise was +13.15%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.Here is how Microsoft performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:Percentage Change in Revenue Y/Y: 18% versus the 11-analyst average estimate of 14.1%.Productivity and Business Processes - Percentage Change in Revenue Y/Y: 17% compared to the 14.2% average estimate based on nine analysts.Intelligent Cloud - Percentage Change in Revenue Y/Y: 28% compared to the 25.6% average estimate based on nine analysts.More Personal Computing - Percentage Change in Revenue Y/Y: 4% compared to the -3.4% average estimate based on nine analysts.Revenue- More Personal Computing: $13.76 billion versus the 10-analyst average estimate of $12.72 billion. The reported number represents a year-over-year change of +4.4%.Revenue- Intelligent Cloud: $30.9 billion versus the 10-analyst average estimate of $30.26 billion. The reported number represents a year-over-year change of +28.3%.Revenue- Productivity and Business Processes: $33.02 billion versus $32.35 billion estimated by 10 analysts on average. Compared to the year-ago quarter, this number represents a +16.6% change.Revenue- Product: $15.92 billion compared to the $16.08 billion average estimate based on three analysts. The reported number represents a change of +4.3% year over year.Revenue by product and service offerings- Windows and Devices: $4.55 billion versus $4.03 billion estimated by three analysts on average.Revenue by product and service offerings- Search and news advertising: $3.7 billion compared to the $3.63 billion average estimate based on three analysts. The reported number represents a change of +14.6% year over year.Revenue by product and service offerings- Enterprise and partner service: $2.02 billion compared to the $1.99 billion average estimate based on three analysts. The reported number represents a change of +4.9% year over year.Revenue by product and service offerings- Server products and cloud services: $28.87 billion versus $28.03 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +30.3% change.View all Key Company Metrics for Microsoft here>>>Shares of Microsoft have returned +4.7% over the past month versus the Zacks S&P 500 composite's +3.8% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microsoft Corporation (MSFT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks