Latest news with #IntelligentCloud
Yahoo
01-08-2025
- Business
- Yahoo
Strong earnings from Meta, Microsoft but misses 1 critical metric
Strong earnings from Meta, Microsoft but misses 1 critical metric originally appeared on TheStreet. Meta reported earnings of $7.14 per share in the second quarter, surpassing estimates of $5.89, and $47.52 billion in sales, exceeding forecasts of $44.83 billion. The company also gave a positive outlook for Q3, saying that sales would be between $47.5 billion and $50.5 billion, which is much higher than the $46.2 billion average. For the full year, Meta now anticipates total expenses of $114 billion to $118 billion, a slight narrowing of its previous estimate. This demonstrates an estimated increase cost between 20% and 24% per annum, as per the report. Microsoft's earnings per share for the second quarter were $3.65, and its revenue was $76.44 billion, which was more than the expected $73.89 billion. Its Intelligent Cloud division made $29.88 billion, which was also more than expected. Microsoft's fiscal year ends in June, so its April–June results are reported as fourth quarter of its fiscal year, not the calendar year. Although more people are interested in digital assets, neither company discussed stablecoin projects or broader crypto strategies in their and Microsoft have diverged notably in the way they are treading the waters of crypto and stablecoins. As reported earlier, Meta is said to be exploring the use of stablecoins such as USDC and USDT to pay creators on Facebook and WhatsApp — a possible reentry into the stablecoin territory for Meta after abandoning its Diem project. Meta would be able to create a stablecoin under the new GENIUS Act legally, provided that it complies with regulatory standards. As per recent reports, Microsoft has teamed with blockchain startup Space and Time to give verified real-time blockchain data feeds, indicating continuous interest in crypto infrastructure and analytics while refraining from creating a stablecoin as of yet. Strong earnings from Meta, Microsoft but misses 1 critical metric first appeared on TheStreet on Jul 30, 2025 This story was originally reported by TheStreet on Jul 30, 2025, where it first appeared. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
01-08-2025
- Business
- Yahoo
Microsoft Stock Jumps as Cloud and AI Demand Drive Strong Quarterly Results
Microsoft (MSFT) reported quarterly earnings that topped analysts' expectations on strong growth in its Intelligent Cloud segment, sending shares higher in extended trading Wednesday. Shares jumped nearly 9% in after-hours trading to $558, well above last week's record highs. Through Wednesday's close, Microsoft stock was up about 22% for 2025. The tech titan posted fiscal fourth-quarter revenue of $76.44 billion, up 18% year-over-year and above analyst estimates compiled by Visible Alpha. Net income rose to $27.23 billion, or $3.65 per share, from $22.04 billion, or $2.95 per share a year earlier, also beating projections. Revenue from Microsoft's Intelligent Cloud segment, which includes Microsoft Azure, grew 26% to $29.89 billion, topping the analyst consensus from Visible Alpha. 'Cloud and AI is the driving force of business transformation across every industry and sector," CEO Satya Nadella said in a release. 'We're innovating across the tech stack to help customers adapt and grow in this new era, and this year, Azure surpassed $75 billion in revenue, up 34 percent, driven by growth across all workloads.' That marked the first quarter Microsoft reported the scale of its Azure business in dollars. Microsoft Forecasts Double-Digit Revenue Growth CFO Amy Hood said Microsoft expects double-digit revenue growth in fiscal 2026, though Hood warned the company would continue to be "capacity constrained" in the near term as it builds out its AI infrastructure. "I talked in January and said I thought we'd be in better supply/demand shape by June, and now I'm saying, 'I hope I'm in better shape by December,'" Hood said. Hood said Microsoft expects to spend $30 billion in capital expenditures in its fiscal first quarter, up from $20 billion a year earlier, as the company works to bring more data center capacity online to keep up with demand. If Microsoft continued to spend at the same pace, that would add up to $120 billion for the full year, up from $88.2 billion in fiscal 2025, though Hood suggested the pace of Microsoft's capex growth would "moderate" compared to fiscal 2025, with a higher growth rate in the first half than second half of fiscal 2026. This article has been updated since it was first published to include additional information and reflect more recent share price values. Read the original article on Investopedia Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Qatar Tribune
31-07-2025
- Business
- Qatar Tribune
Microsoft quarterly profits soar on AI and cloud growth
Agencies Technology giant Microsoft on Wednesday said its profit soared above expectations in the recently ended quarter, driven by its cloud computing and artificial intelligence (AI) units. Microsoft reported profit of $27.2 billion on revenue of $76.4 billion, some $29.9 billion of which was brought in by its Intelligent Cloud business. 'Cloud and AI is the driving force of business transformation across every industry and sector,' Microsoft chief executive Satya Nadella said in an earnings release. 'We're innovating across the tech stack to help customers adapt and grow in this new era.' Microsoft's Azure cloud computing offerings brought in more than $75 billion for the company's fiscal year, which ended on June 30, in an increase of 34 percent from the prior year, according to Nadella. Microsoft shares jumped about 7 percent in after-market trades that followed release of the earnings figures. 'This was a slam-dunk quarter for Microsoft with cloud and AI driving significant business transformation across every sector and industry,' Wedbush Securities analyst Dan Ives said in a note to investors. 'The company continues to capitalize on the AI Revolution.' Microsoft is well-positioned to make money as increasing numbers of companies ramp up efforts to take advantage of artificial intelligence in their businesses, according to Ives. Microsoft was one of the first tech giants to double down on artificial intelligence when the launch of ChatGPT in 2022 rocked the tech industry.
Iraqi News
31-07-2025
- Business
- Iraqi News
Microsoft quarterly profits soar on AI and cloud growth
San Francisco – Technology giant Microsoft on Wednesday said its profit soared above expectations in the recently ended quarter, driven by its cloud computing and artificial intelligence (AI) units. Microsoft reported profit of $27.2 billion on revenue of $76.4 billion, some $29.9 billion of which was brought in by its Intelligent Cloud business. 'Cloud and AI is the driving force of business transformation across every industry and sector,' Microsoft chief executive Satya Nadella said in an earnings release. 'We're innovating across the tech stack to help customers adapt and grow in this new era.' Microsoft's Azure cloud computing offerings brought in more than $75 billion for the company's fiscal year, which ended on June 30, in an increase of 34 percent from the prior year, according to Nadella. Microsoft shares jumped about 7 percent in after-market trades that followed release of the earnings figures. 'This was a slam-dunk quarter for Microsoft with cloud and AI driving significant business transformation across every sector and industry,' Wedbush Securities analyst Dan Ives said in a note to investors. 'The company continues to capitalize on the AI Revolution.' Microsoft is well-positioned to make money as increasing numbers of companies ramp up efforts to take advantage of artificial intelligence in their businesses, according to Ives. Microsoft was one of the first tech giants to double down on artificial intelligence when the launch of ChatGPT in 2022 rocked the tech industry. Like its rivals, it has spent massively on building the infrastructure necessary to power the AI revolution, with analysts keeping a close eye on the return on investment. The company in January said it was on track to pump about $80 billion into capital and infrastructure in the fiscal year. Nadella has said finding enough power sources for its AI data center needs was a priority. Microsoft in early July slashed a little less than four percent of its global workforce as it seeks to cut layers of middle management and leverage new technologies. 'We continue to implement organizational changes necessary to best position the company and teams for success in a dynamic marketplace,' a Microsoft spokesperson said in an email. The job cuts follow a round in May that saw about 6,000 positions culled from its global workforce. The company, which is advancing in its plans to deploy AI across all its products, said it was working to 'empower employees to spend more time focusing on meaningful work by leveraging new technologies and capabilities.'
Yahoo
31-07-2025
- Business
- Yahoo
Trending tickers: latest investor updates on Microsoft, Meta, Nvidia, Amazon and Rolls-Royce
Microsoft (MSFT) Shares in Microsoft jumped by almost 10% in pre-market trading after the company announced a surge in quarterly profits thanks to record revenues from its cloud computing division. Net income increased 24% year on year to $27.2bn (£20.51bn), surpassing analysts' expectations for $25.3bn in the fourth quarter of Microsoft's fiscal year, ending June 30. Revenue increased 18% to $76.4bn in the fiscal fourth quarter ending June 30, up from $64.7bn a year earlier. That's the fastest growth in more than three years. The company's Intelligent Cloud unit, which includes the Azure cloud, produced $29.88bn in revenue in the final quarter. For the entire fiscal year, this AI division saw revenue surge 34% to a record $75bn. The company predicted its capital expenditure for the next fiscal year would top $100bn, a 14% increase from the year prior. It's the fifth quarter in a row that Microsoft has beaten Wall Street's expectations. Read more: Shell announces further $3.5bn in share buybacks as profits beat estimates 'Cloud and AI is the driving force of business transformation across every industry and sector,' said Satya Nadella, chairman and chief executive officer of Microsoft. 'We're innovating across the tech stack to help customers adapt and grow in this new era, and this year, Azure surpassed $75bn in revenue, up 34%, driven by growth across all workloads,' Nadella said in a statement. Shares in the company are trading a near record of $513, up 22% since the start of the year. Meta (META) Meta shares were up by 12% ahead of the US opening bell after posting a bumper set of financial results that eased concerns it was lagging rivals in the AI race. The firm, which owns Facebook, Instagram and WhatsApp, said revenue for the three months to the end of June rose 22% from the same period last year to $47.5bn. Meanwhile, profits jumped by 36% to $18.3bn. Profit per share came in at $7.14, above analysts' estimates. Meta said it expected its total expenses for 2025 to come in the range of $114bn and $118bn. The company added its AI initiatives will 'result in a 2026 year-over-year expense growth rate that is above the 2025 expense growth.' "I think there are all these questions that people have about what are going to be the timelines to get to really strong AI or superintelligence ... we've observed the more aggressive assumptions, or the fastest assumptions, have been the ones that have most accurately predicted what would happen. I think that that just continued to happen over the course of this year too," CEO Mark Zuckerberg said on a conference call with analysts. Reality Labs logged an operating loss of $4.53bn while recording $370m in sales during the same period. This division oversees the Quest line of virtual reality headsets in addition to the Ray-Ban Meta smart glasses. Matt Britzman, senior equity analyst at Hargreaves Lansdown, said: "Meta has knocked it out of the park. Pick your metric and Meta crushed it, from ad revenue growth to daily users, all the way down to the profit lines. "AI is clearly delivering real-world benefits for advertisers, and they're willing to pay more as a result. Average price per ad was up 9% over the quarter, a clear indication that Meta is delivering an improved product for both users and advertisers. "The broader focus now turns to Meta's mammoth AI investment plans and whether it can continue to manage those costs without hurting earnings or free cash flow. "CFO commentary called out higher costs next year, and another year of similar capex growth, which many analysts did not have on their bingo cards. Clearly, all this spending adds some near-term risks to the bottom line, but Meta looks set to be a clear winner in the AI space over the longer term." Nvidia (NVDA) Shares in the AI darling were trending in pre-market trading as Morgan Stanley raised its price target to $200 from $170 while maintaining an Overweight rating on the stock. "We think that the increase in enthusiasm for AI semis is justified by long-term strength in the business," Morgan Stanley analyst Joseph Moore said in a client note. "AI strength is exceptional in both supply and demand," Moore said. "All of our data points and contacts are telling us that customers need more compute, and we are seeing a clear acceleration in inference workloads driving that." Moore added that he was not concerned about the higher valuations for AI chipmakers. "While stock prices have moved higher, our conviction on AI spend durability in 2026 continues to grow," he said. "It is our view that at least three of the four top cloud customers have asked for upside, and we have seen even more notable strength from neoclouds and consumer internet companies." Read more: Mercedes-Benz, Porsche and Aston Martin among latest carmakers hit by Trump's tariffs Meanwhile, China raised concerns over potential security risks in Nvidia's H20 artificial intelligence chip, in a blow to the US company's push to revive sales in the country after Washington granted approval for the export of a made-for-China chip. The Cyberspace Administration of China, the country's internet regulator, said it was concerned by a US proposal for advanced chips sold abroad to be equipped with tracking and positioning functions. Amazon (AMZN) Shares in Amazon are 3% higher in pre-market trading, as the e-commerce giant prepares to announce second quarter results later in the day. "Investor sentiment is broadly positive, with expectations improving in recent weeks following a disappointing 2Q guide that was delivered in early May," Wedbush analyst Scott Devitt wrote to clients Wednesday. "Still, profitability forecasts for the year remain depressed as investors weigh the impact of tariff/macro uncertainty, currency risk, rising expenses to support AI initiatives, and an uncertain cost trajectory associated with Project Kuiper." According to analysts, Amazon's total revenue is expected to grow 9.5% year-on-year to $162.2bn. This falls at the mid-range point of Amazon's own guidance of $159bn-$164bn. Operating income is forecast at $16.7bn, a 13.8% jump from the same period last year, according to IG analysts. All 26 analysts tracked by Visible Alpha give Amazon's stock a "buy" or equivalent rating. Their average price target near $250 would surpass Amazon's previous record close of $242.06 on 4 February. Amazon is scheduled to report second-quarter earnings after the market closes on Thursday, with analysts focusing on the artificial intelligence powered growth of the Amazon Web Services cloud. However, questions about the effects of tariffs on Amazon's retail operations are likely to arise. Rolls-Royce (RR.L) Rolls-Royce's share price has soared by 10.9% in early trading this morning in London, to a new record high, after reporting a 50% increase in underlying operating profit in the first half. Underlying operating profit for the engine maker jumped to £1.73bn in the first six months of 2025 from £1.15bn a year earlier. Pre-tax profit rose to £1.7bn, up from £1bn. Underlying revenues in the first six months were just over £9bn, compared with £8.1bn in the same period in 2024. The company also raised its free cash flow guidance to £3bn-£3.1bn, compared with a previous range of £2.7bn-£2.9bn. The jet engine manufacturer was valued at £83bn yesterday evening, so another 10% gain puts its valuation at more than £92bn, a new record high. Its market value has almost doubled over the course of 2025 and the stock is up 400% in the last two years. Tufan Erginbilgiç, Rolls-Royce's chief executive, said the company's transformation was continuing to deliver. 'Our actions led to strong first half-year results, despite the challenges of the supply chain and tariffs,' he said. Since taking over in 2023, Erginbilgic has cut costs and pushed customers to pay more for its products through renegotiating contracts for maintaining jet engines that go on widebody planes such as the Airbus A350 and Boeing's 787. Read more: Should you invest in gold? Lale Akoner, global market analyst at eToro, said: 'Rolls-Royce's latest results show a business that keeps on delivering. First-half profit rose 51% to £1.73bn, and free cash flow reached £1.6bn. That's ahead of expectations and led the company to raise full-year forecasts for both profit and cash generation. 'Civil Aerospace is driving the numbers, with margin hitting 25%, a level that would've seemed unrealistic two years ago. It's not just more planes flying, it's better contracts, higher prices, and fewer loss-making deals. But what matters more for the long-term story is what's happening outside aviation. 'Power Systems, which supplies engines to data centres, saw nearly 90% profit growth. That's a clear play on AI and cloud infrastructure. With the addition of steady defence contracts and its leading role in the UK's nuclear SMR programme, Rolls-Royce is building exposure to real-world trends with long-term funding behind them. For retail investors, the story has shifted and Rolls-Royce is no longer a recovery trade. It is generating cash, expanding margins, and exposed to structurally growing markets. It's starting to operate like the business investors always hoped it would be.'Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
