Latest news with #M365Copilot
Economic Times
31-07-2025
- Business
- Economic Times
Microsoft's Azure cloud revenue surges as AI spending pays off
Agencies Microsoft's Azure cloud-computing business delivered another quarter of blockbuster growth on Wednesday, powering revenue above Wall Street's expectations and showcasing the growing returns on its massive artificial intelligence bets. Shares of the software company rose more than 6% in extended trading after it said Azure sales surpassed $75 billion on an annual basis, the first time it has disclosed that figure. That beat expectations for $74.62 billion. The business still trails market leader Amazon Web Services , which had an earlier start in cloud computing and brought in $107.56 billion in its most recent fiscal year. The results are likely to bolster investor confidence that Big Tech is benefiting from its massive data center buildout, with capital expenditure to reach $330 billion this year. Rival Alphabet's earnings also showed last week that AI spending was rising, but so were the returns, as it beat revenue estimates and lifted its outlay forecast by $10 billion. Microsoft said Azure revenue jumped 39% in the June quarter, more than the analyst average estimate of 34.75%, according to Visible Alpha. Overall revenue rose 18% to $76.4 billion in the April-June period, Microsoft's fiscal fourth quarter. Analysts on average expected $73.81 billion, according to data compiled by LSEG. Capital spending rose 27% to $24.2 billion, compared with estimates of $23.08 billion, per Visible Alpha. Microsoft has said the spending is crucial to overcoming supply constraints that have hampered its ability to meet soaring AI demand. The company has emerged as an early leader in making money from AI thanks to its exclusive access to OpenAI's technology. The tie-up has helped attract scores of businesses to its cloud service and allowed Microsoft to swiftly roll out AI products such as its M365 Copilot AI assistant for enterprises. It has also turned the company into an investor darling that is $200 billion short of becoming only the second company to hit a $4-trillion valuation, with its shares up about 20% this year. But investor doubts have risen about the OpenAI tie-up as the companies renegotiate the deal and the startup shifts some workloads to rivals, including Google and Oracle. Media reports have said that the two are at a deadlock over how much access Microsoft will retain to OpenAI's tech and its stake if OpenAI converts into a public-benefit corporation. Microsoft has tried to reduce its reliance on OpenAI by developing in-house AI technology and broadening its model lineup with partners such as xAI, Meta, and France's Mistral, hosting their models on Azure for clients. Elevate your knowledge and leadership skills at a cost cheaper than your daily tea. Zomato delivered, but did the other listed unicorns? As rates slide, who will grab the savings pie? MFs, insurers? Is it time for Tim Cook to bid bye to Apple? Regulators promote exchanges; can they stifle one? Watch IEX Stock Radar: Down over 20% from highs! Varun Beverages stock showing signs of trend reversal – time to buy? History tells us 'Hold' is equal to wealth creation: 11 large- and mid-cap stocks from different sectors with upside potential of up to 37% In some cases parentage equals 'management with ability': 5 mid-caps from different sectors, which tick the right box Multibagger or IBC - Part 17: Margins are slim. Promoters are all in. Is this small cap the ultimate contrarian bet?
Time of India
31-07-2025
- Business
- Time of India
Microsoft's Azure cloud revenue surges as AI spending pays off
Microsoft's Azure cloud-computing business delivered another quarter of blockbuster growth on Wednesday, powering revenue above Wall Street's expectations and showcasing the growing returns on its massive artificial intelligence bets. Shares of the software company rose more than 6% in extended trading after it said Azure sales surpassed $75 billion on an annual basis, the first time it has disclosed that figure. That beat expectations for $74.62 billion. The business still trails market leader Amazon Web Services , which had an earlier start in cloud computing and brought in $107.56 billion in its most recent fiscal year. The results are likely to bolster investor confidence that Big Tech is benefiting from its massive data center buildout, with capital expenditure to reach $330 billion this year. Rival Alphabet's earnings also showed last week that AI spending was rising, but so were the returns, as it beat revenue estimates and lifted its outlay forecast by $10 billion. Microsoft said Azure revenue jumped 39% in the June quarter, more than the analyst average estimate of 34.75%, according to Visible Alpha. Overall revenue rose 18% to $76.4 billion in the April-June period, Microsoft's fiscal fourth quarter. Analysts on average expected $73.81 billion, according to data compiled by LSEG. Capital spending rose 27% to $24.2 billion, compared with estimates of $23.08 billion, per Visible Alpha. Microsoft has said the spending is crucial to overcoming supply constraints that have hampered its ability to meet soaring AI demand. The company has emerged as an early leader in making money from AI thanks to its exclusive access to OpenAI's technology. The tie-up has helped attract scores of businesses to its cloud service and allowed Microsoft to swiftly roll out AI products such as its M365 Copilot AI assistant for enterprises. It has also turned the company into an investor darling that is $200 billion short of becoming only the second company to hit a $4-trillion valuation, with its shares up about 20% this year. But investor doubts have risen about the OpenAI tie-up as the companies renegotiate the deal and the startup shifts some workloads to rivals, including Google and Oracle. Media reports have said that the two are at a deadlock over how much access Microsoft will retain to OpenAI's tech and its stake if OpenAI converts into a public-benefit corporation. Microsoft has tried to reduce its reliance on OpenAI by developing in-house AI technology and broadening its model lineup with partners such as xAI, Meta, and France's Mistral, hosting their models on Azure for clients.
The Star
31-07-2025
- Business
- The Star
Microsoft's Azure cloud revenue surges as AI spending pays off
FILE PHOTO: A view shows the Microsoft logo on the day of the Hannover Messe, one of the world's largest industrial trade fairs with this year's partner country being Canada, as both Canada and the European Union face new U.S. tariffs, in Hanover, Germany, March 31, 2025. REUTERS/Fabian Bimmer/File Photo (Reuters) -Microsoft's Azure cloud-computing business delivered another quarter of blockbuster growth on Wednesday, powering revenue above Wall Street's expectations and showcasing the growing returns on its massive artificial intelligence bets. Shares of the software company rose more than 6% in extended trading after it said Azure sales surpassed $75 billion on an annual basis, the first time it has disclosed that beat expectations for $74.62 billion. The business still trails market leader Amazon Web Services, which had an earlier start in cloud computing and brought in $107.56 billion in its most recent fiscal year. The results are likely to bolster investor confidence that Big Tech is benefiting from its massive data center buildout, with capital expenditure to reach $330 billion this year. Rival Alphabet's earnings also showed last week that AI spending was rising, but so were the returns, as it beat revenue estimates and lifted its outlay forecast by $10 billion. Microsoft said Azure revenue jumped 39% in the June quarter, more than the analyst average estimate of 34.75%, according to Visible Alpha. Overall revenue rose 18% to $76.4 billion in the April-June period, Microsoft's fiscal fourth quarter. Analysts on average expected $73.81 billion, according to data compiled by LSEG. Capital spending rose 27% to $24.2 billion, compared with estimates of $23.08 billion, per Visible Alpha. Microsoft has said the spending is crucial to overcoming supply constraints that have hampered its ability to meet soaring AI demand. The company has emerged as an early leader in making money from AI thanks to its exclusive access to OpenAI's technology. The tie-up has helped attract scores of businesses to its cloud service and allowed Microsoft to swiftly roll out AI products such as its M365 Copilot AI assistant for enterprises. It has also turned the company into an investor darling that is $200 billion short of becoming only the second company to hit a $4-trillion valuation, with its shares up about 20% this year. But investor doubts have risen about the OpenAI tie-up as the companies renegotiate the deal and the startup shifts some workloads to rivals, including Google and Oracle. Media reports have said that the two are at a deadlock over how much access Microsoft will retain to OpenAI's tech and its stake if OpenAI converts into a public-benefit corporation. Microsoft has tried to reduce its reliance on OpenAI by developing in-house AI technology and broadening its model lineup with partners such as xAI, Meta, and France's Mistral, hosting their models on Azure for clients. (Reporting by Deborah Sophia and Aditya Soni in Bengaluru; Editing by Anil D'Silva and Rod Nickel)
Yahoo
29-07-2025
- Business
- Yahoo
Microsoft Stock Hits All-Time High Ahead of Q4, And Wall Street Still Sees Room for MSFT to Run
Microsoft (MSFT) will announce its fourth quarter fiscal 2025 earnings on July 30. Investors have been bullish ahead of the results, driving the stock to a record high of $518.29 on July 25. So far in 2025, shares are up a robust 21.5%, powered by strong demand for Microsoft's cloud and artificial intelligence (AI) offerings. This recent rally has pushed Microsoft's valuation higher. However, analysts remain confident there's still room for upside, especially as global demand for cloud services and generative AI solutions continues to accelerate. More News from Barchart Tesla Just Signed a Chip Supply Deal with Samsung. What Does That Mean for TSLA Stock? Here's What Happened the Last Time Novo Nordisk Stock Was This Oversold Dear Microsoft Stock Fans, Mark Your Calendars for Aug. 1 Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! Recent quarterly results from Alphabet (GOOGL), which reported robust growth in its own cloud and AI solutions, have only added to the positive sentiment surrounding Microsoft. Like Alphabet, Microsoft is deeply embedded in the AI and enterprise cloud landscape, and it's benefiting from similar tailwinds. For instance, Microsoft Cloud brought in more than $42 billion in revenue in Q3, a 22% increase. This reflected strong and growing demand for its solutions. Furthermore, Microsoft's AI portfolio is also gaining traction, with its AI-related revenue climbing steadily. The company has also been aggressively expanding its infrastructure to meet this rising demand. Its ongoing investments in data center capacity are designed to keep pace with the AI boom and ensure it can support future growth. In short, Microsoft's leadership in both AI and cloud will continue to pay dividends in Q4, driving its financials. With strong tailwinds behind it, Microsoft could once again deliver solid quarterly revenue and earnings. Microsoft Q4 Earnings: Cloud and AI Set to Lead Growth Microsoft is poised to report another strong quarter, with its fourth-quarter financials expected to reflect continued momentum mainly driven by its cloud and AI offerings. In the Productivity and Business Processes segment, Microsoft anticipates revenue between $32.05 billion and $32.35 billion, representing double-digit growth. This growth is expected to be supported by steady demand for Microsoft 365 (M365) Commercial cloud services. Revenue in this category is projected to rise around 14%, with average revenue per user benefiting from greater adoption of premium offerings such as E5 and AI-enhanced M365 Copilot. Additionally, small and medium-sized businesses continue to drive the expansion of Microsoft's customer base. M365 Commercial product revenues, which include more traditional software purchases like Office and Windows on-premises components, are expected to see moderate mid-single-digit growth. M365 Consumer cloud, however, is likely to grow in the mid-teens, aided by the price increase introduced in January. LinkedIn is poised to deliver high single-digit growth, buoyed by increasing member engagement and platform expansion. Meanwhile, Dynamics 365 is expected to see revenue grow in the mid to high teens, with strong demand across all workloads. The Intelligent Cloud segment, a significant growth engine for Microsoft, is projected to generate revenue between $28.75 billion and $29.05 billion, up 20% to 22% in constant currency. Much of this will be fueled by strong demand for Azure, with revenue in the cloud platform anticipated to rise 34% to 35%. Azure's non-AI services are growing steadily, but AI services are expanding even faster. Conversely, the on-premises server business is expected to decline in the mid-single digits as more customers shift to cloud-based solutions. Enterprise and partner services should grow in the mid to high single digits, driven by steady demand for support services. In the More Personal Computing segment, revenue is forecasted between $12.35 and $12.85 billion. Windows OEM and Devices revenue are likely to decline, reflecting ongoing normalization in inventory and weak device demand. Still, Search and news advertising is a bright spot, with revenue growth expected in the mid to high teens, supported by gains across Edge and Bing. Gaming revenue should rise modestly, with Xbox content and services growing in the high single digits thanks to first-party titles. Despite pressure on margins due to AI infrastructure investment, Microsoft's earnings are expected to remain strong. Analysts project EPS of $3.35, up 13.6% year-over-year. Given Microsoft's consistent track record of exceeding expectations, Q4 may once again deliver upside for investors. What Is the Potential Upside for Microsoft Stock? With its strong positioning in cloud computing and AI, Microsoft is well-positioned to deliver another impressive quarter. Wall Street is bullish about MSFT stock ahead of Q4 earnings with a consensus rating of 'Strong Buy.' One of the highest price targets on the Street is $626, suggesting MSFT stock could climb about 22% from its current price. On the date of publication, Sneha Nahata did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on 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
Yahoo
17-07-2025
- Business
- Yahoo
Jefferies Sticks With Buy on Microsoft After Survey
A fresh Jefferies survey of 40 enterprises finds M365 Copilot usage jumped to 82%, up from 77% last fall, and forecasts Copilot could drive roughly $11 billion in revenue for Microsoft (NASDAQ:MSFT) by 2026. Respondents told Jefferies they plan to boost their Microsoft spending by about 4% over the next two years. That confidence helped Jefferies reaffirm its buy rating on MSFT and set a $600 target, calling the company a top AI winner. Brent Thill's team points out that at 31-one times 2026 EPS, Microsoft still looks attractively valued given Copilot's growth runway. Warning! GuruFocus has detected 7 Warning Sign with MSFT. As businesses weave AI deeper into their workflows, Copilot's revenue potential could become a major pillar of Microsoft's cloud story. Even with conservative assumptions, Jefferies pegs Copilot at just over $5 billion in 2025 and $11 billion in 2026. A separate Morgan Stanley (NYSE:MS) CIO survey shows tech leaders planning year?over?year spending increases of more than 6% on Microsoft tools. If those plans hold, Copilot's boom may prove to be the next big chapter in enterprise AI. This article first appeared on GuruFocus. Sign in to access your portfolio
