Microsoft’s Cloud Tsunami: How Azure’s 33% Surge Left Wall Street Stunned After Tariff Turmoil

Microsoft emerged as the undisputed champion in Big Tech's first earnings battle since President Donald Trump reinstated tariffs, reporting results that beat Wall Street estimates and separated it from competitors struggling with trade headwinds. Microsoft reported revenue of $70.1 billion and earnings per share of $3.46 for the quarter ended March 31, 2025, both above analyst estimates. The company's shares jumped close to 8% in aftermarket trading, an indication of investor confidence renewed.

 

The highlight performance was driven by explosive expansion in Microsoft's Azure cloud business and AI-infused software products, with cloud revenue alone up 20% year over year to $42.4 billion. Strategic alliances, including with OpenAI, as well as continued investments in data centers and AI infrastructure have strengthened Microsoft's leadership position as a tech industry leader. While Apple and Amazon cautioned of increasing expenses and cut projections in response to new tariffs-Apple alone is on the hook for an estimated $900 million in added quarterly costs-Microsoft's software-centric lineup has been relatively shielded from direct tariff effects.

 

With a market capitalization of $2.93 trillion and plans to spend $80 billion on data centers this fiscal year, Microsoft is set to regain its title as the world's most valuable company. Its strong outlook and resilience in the face of global trade tensions have calmed markets and raised the bar for the rest of Big Tech.

 

Source: Financial Times, CNBC, Investing.com, Microsoft Press Release