Microsoft Faces a ‘Derisked’ Setup for Q3 2025 Earnings Report Amid Macroeconomic Resilience

Microsoft (MSFT) is set to report its fiscal third-quarter earnings after the market closes on Wednesday, and despite a recent dip in its stock, analysts are optimistic about its future performance. Jefferies analyst Brent Thill believes that the company has a ‘derisked setup’ heading into its earnings report, with the stock down by 13% since its fiscal Q2 results. Thill remains bullish on Microsoft’s long-term prospects, citing its strength in cloud computing, particularly with Azure, and the growth potential of its artificial intelligence initiatives. Despite this, Thill anticipates that the company will provide cautious guidance, citing concerns over Trump-era tariffs. Analysts expect Microsoft to report earnings of $3.22 per share for the March quarter, marking a 10% year-over-year increase, with revenues projected to rise by 11% to $68.43 billion. Microsoft’s ability to gain market share in AI and cloud computing remains a key factor for future growth, but there are concerns about the company’s AI investments, as some data center projects have been paused or slowed. Other analysts like Brad Zelnick of Deutsche Bank and Joel Fishbein of Truist Securities have also maintained buy ratings on MSFT stock, with price targets of $475 and $600, respectively.