Microsoft Q3 Revenue $82.9B, EPS $4.27 Surpasses Estimates; $610 Price Target
Microsoft posted Q3 revenue of $82.9B (+18% yoy) and non-GAAP EPS of $4.27 (+23%), topping consensus by 2% and 5%. Goldman Sachs kept a Buy rating with a $610 target and forecast 39%–40% Azure growth, while Google Cloud’s 63% Q1 expansion highlights intensifying competition.
1. Third-Quarter Financial Results
Microsoft reported fiscal third-quarter revenue of $82.9 billion, up 18% year over year, with non-GAAP earnings per share of $4.27, a 23% increase that beat consensus estimates by 2% on revenue and 5% on EPS.
2. Analyst Buy Rating and Outlook
Goldman Sachs reiterated a Buy rating and set a $610 twelve-month price target, noting that Azure is projected to grow 39%–40% in constant currency during the fiscal fourth quarter, signaling potential acceleration in the first half of fiscal 2027.
3. Competitive Cloud Pressures
Google Cloud delivered 63% year-over-year revenue growth in Q1 with a $460 billion backlog, significantly outpacing Azure’s 40% pace and underscoring intensifying competition in the AI infrastructure market.