Latest news with #MicrosoftMSFT
Yahoo
2 days ago
- Business
- Yahoo
MSFT Q4 Earnings Beat on Cloud & AI Strength: Time to Buy the Stock?
Microsoft MSFT delivered exceptional fourth-quarter fiscal 2025 results, which exceeded the Zacks Consensus Estimate across all key metrics, demonstrating the company's dominant position in the rapidly expanding cloud and artificial intelligence markets. The technology giant reported revenues of $76.44 billion, surpassing the Zacks Consensus Estimate by 3.7%, while earnings per share reached $3.65, beating the consensus mark by 8.96%. These robust results underscore Microsoft's successful execution of its cloud-first, AI-powered strategy and present a compelling investment opportunity for 2025. Azure & AI Drive Record Growth in Q4 The standout performer was Azure, Microsoft's cloud computing platform, which achieved remarkable growth of 39% year over year. For the first time, Microsoft disclosed Azure's standalone annual revenues, revealing it surpassed $75 billion for fiscal 2025, representing 34% growth driven by broad-based demand across all workloads. This disclosure provides crucial transparency for investors and demonstrates Azure's substantial scale in competing with Amazon AMZN-owned Amazon Web Services, Alphabet GOOGL-owned Google Cloud Platform and Oracle ORCL Intelligent Cloud segment, which houses Azure and server products, generated $29.88 billion in revenues, rising 26% and beating consensus estimates of $28.92 billion. The company has transformed every Azure region into an AI-first environment with liquid cooling capabilities, positioning itself at the forefront of the artificial intelligence infrastructure wave. Management revealed that Microsoft added more than two gigawatts of new datacenter capacity over the past 12 months alone, now operating over 400 datacenters across 70 regions globally, more than any other cloud AI momentum extends beyond infrastructure, with Microsoft's Copilot products achieving significant traction. The company reported that its AI assistants, including Microsoft 365 Copilot for commercial customers and the consumer Copilot in Windows, have reached 100 million monthly active users. This rapid adoption demonstrates Microsoft's ability to monetize AI investments through practical applications that enhance productivity across its ecosystem. The integration of AI capabilities across Microsoft's product portfolio is driving higher revenue per user for Microsoft 365 commercial cloud products, creating a powerful growth catalyst. Strong Forward Guidance Creates Bright Prospects Looking ahead, Microsoft's guidance suggests continued strength. The company projected fiscal first-quarter 2026 revenues between $74.7 billion and $75.8 billion. More importantly, Azure revenues are expected to grow approximately 37% at constant currency (cc) in the upcoming quarter, indicating sustained momentum despite the massive scale already Zacks consensus estimate for fiscal first-quarter revenues is pegged at $75.38 billion, indicating 14.93% growth year over year. The consensus mark for earnings is pegged at $3.64 per share, indicating an increase of 10.3% from the year-ago period. Microsoft Corporation Price and Consensus Microsoft Corporation price-consensus-chart | Microsoft Corporation Quote Cloud Market Dynamics and Competitive Position The global cloud computing market presents enormous growth opportunities, with the market expected to reach $912.77 billion in 2025 and projected to witness a CAGR exceeding 21% through 2034. Within this expanding market, Microsoft has steadily gained ground against competitors. While Amazon Web Services maintains the largest share at approximately 31%, Microsoft Azure has captured between 20% and 24% of the market, showing consistent share gains quarter after quarter throughout fiscal competitive advantages extend beyond raw market share statistics. The company benefits from deep enterprise relationships and seamless integration with its Office productivity suite, Windows operating system, and enterprise software solutions. This ecosystem approach creates significant switching costs and drives adoption of Azure services among existing Microsoft customers. Furthermore, Microsoft's early and aggressive investments in AI, particularly through its partnership with OpenAI, have positioned Azure as the preferred platform for AI workloads, attracting both startups and enterprises seeking to leverage cutting-edge AI has outperformed the Zacks Computer & Technology sector in the past six months. While shares of Oracle and Google have returned 42.2% and 5.6%, respectively, Amazon has lost 3.9% in the same time frame. Microsoft's solid 27.5% six-month performance demonstrates superior execution. MSFT Outperforms Sector YTD Image Source: Zacks Investment Research Despite facing competition from AWS, Google Cloud and Oracle Cloud, Microsoft's differentiated approach focusing on hybrid cloud solutions and enterprise integration continues to resonate with customers. The company's ability to deliver consistent growth while operating at such a massive scale demonstrates the sustainability of its competitive advantages and the effectiveness of its strategic investments. Valuation Considerations Microsoft currently trades at a forward price-to-sales ratio of 12.1x, representing a premium to the Zacks Computer-Software industry average of 8.86 times. While this elevated valuation might typically signal caution, several factors justify the premium. The company's accelerating Azure growth, expanding margins, and leadership position in the AI revolution support higher multiples. Microsoft's operating margin expanded to 44.9% in the fiscal fourth quarter, demonstrating improved efficiency even while investing heavily in AI infrastructure. MSFT's P/S F12M Ratio Image Source: Zacks Investment Research Investment Outlook for 2025 The premium valuation reflects investor confidence in Microsoft's ability to sustain above-market growth rates and capture an outsized share of the cloud and AI opportunity. With Azure showing acceleration rather than deceleration at its current scale, and AI monetization still in early stages, Microsoft appears well-positioned to grow into and potentially exceed its current valuation multiples. For growth-oriented investors seeking exposure to secular technology trends, Microsoft presents an attractive entry point despite the premium valuation, particularly given its proven execution track record and multiple growth drivers extending well into the future. Microsoft currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Inc. (AMZN) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Oracle Corporation (ORCL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 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
Wall Street Journal
25-07-2025
- Business
- Wall Street Journal
A Failed Microsoft Security Patch Is the Latest Win for Chinese Hackers
Last year, Satya Nadella pledged to make security priority number one at Microsoft MSFT 0.99%increase; green up pointing triangle. A new hack involving China is showing just how difficult that can be. The attack involves several versions of Microsoft's SharePoint software that serve as a document storage platform for customers who don't want to use the cloud. Microsoft released patches for a pair of SharePoint bugs earlier this month, but the fixes were quickly bypassed, allowing China-linked hackers to break into hundreds of organizations, according to security researchers.
Yemen Online
23-07-2025
- Business
- Yemen Online
FAB's Record H1 2025 Earnings: A Strategic Case for Undervalued Growth in the UAE Banking Sector
First Abu Dhabi Bank (FAB) has shattered expectations with its record-breaking first-half 2025 financial performance, posting a net profit of AED 10.63 billion—a 26% year-on-year increase—and a Return on Tangible Equity (RoTE) of 20.5%. These figures not only outpace industry benchmarks but also underscore FAB's emergence as a leader in AI-driven innovation and diversified revenue generation. For investors, this represents a compelling opportunity to capitalize on a bank that is redefining the UAE banking sector's growth trajectory while trading at a discount to its intrinsic value. FAB's strategic embrace of artificial intelligence (AI) has positioned it as a pioneer in digital banking. The deployment of a foundational Agentic AI platform, coupled with the rollout of Microsoft MSFT -0.28% 365 Copilot for all employees, has streamlined operations and enhanced decision-making. Innovations such as the Board AI Observer—a tool that analyzes boardroom discussions to optimize governance—and Voice Concierge, which personalizes customer service, have significantly improved operational efficiency. These advancements have reduced the cost-to-income ratio to 22.3% in Q1 2025 (down from 24% a year earlier), while boosting customer satisfaction and retention. The integration of AI into credit analytics and onboarding processes has further strengthened FAB's risk management framework. By automating underwriting and fraud detection, the bank has reduced loan impairments and accelerated customer acquisition. This technological edge is not just a cost-saving measure—it's a revenue driver. For instance, FAB's AI-powered investment banking division secured a landmark deal to finance one of the region's largest data center projects, contributing to a 17% year-on-year revenue increase in its global markets segment. FAB's revenue model is increasingly resilient, with non-interest income surging 41% to AED 8.35 billion in H1 2025. This growth was fueled by a 25% rise in fees and commissions and a 30% increase in foreign exchange and investment income. The bank's non-interest income now accounts for 46% of total revenue—a stark contrast to the UAE banking sector's average of 38%. This diversification insulates FAB from interest rate fluctuations and positions it to thrive in a low-rate environment. Geographic diversification further amplifies this resilience. FAB's international operations, spanning 16 countries, contributed 30% year-on-year revenue growth in H1 2024. Its recent membership in the Cross-Border Interbank Payment System (CIPS) as the first bank FRBA -- in the MENA region has unlocked new cross-border transaction opportunities, particularly in China and Asia. Domestically, FAB's expansion into wealth management, personal banking, and corporate finance has driven 12% revenue growth in these segments.
Yahoo
26-06-2025
- Business
- Yahoo
MSFT vs. PEGA: Which Agentic AI Vendor is a Better Buy in 2H25?
The artificial intelligence (AI) revolution has entered a new phase with the emergence of agentic AI — systems capable of autonomous decision-making and task execution rather than merely assisting human users. Two prominent players in this space, Microsoft MSFT and Pegasystems PEGA, are taking distinctly different approaches to capitalize on this transformative technology. Microsoft leverages its massive cloud infrastructure and enterprise software ecosystem to integrate agentic capabilities across its portfolio, while Pegasystems focuses on specialized workflow automation and legacy system modernization powered by AI companies recently announced significant expansions of their agentic AI offerings, with Microsoft evolving Copilot into autonomous digital workers and Pega enhancing its Blueprint platform to automatically transform legacy systems into modern applications. The timing of these announcements, coupled with strong financial performance from both companies, makes for a compelling comparison as investors seek exposure to the next wave of AI delve deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now. Microsoft's approach to agentic AI represents a comprehensive platform strategy that spans its entire technology stack. The company's third-quarter fiscal 2025 results demonstrated continued momentum, with total revenues reaching $70.1 billion, up 13% year over year. Microsoft Cloud revenues of $42.4 billion grew 22% in constant currency, with Azure showing particularly strong performance at 33% growth, including 16 percentage points from AI services company's agentic AI strategy centers on transforming Copilot from a simple assistant into autonomous digital workers capable of reasoning, planning, and acting independently. Microsoft processed more than 100 trillion tokens during the quarter, representing a five-fold increase year over year, indicating massive adoption of its AI services. The company has introduced specialized agents like Sales Agent and Customer Service Agent while enabling customers to build custom agents through Copilot Studio, with more than 230,000 organizations already using the scale advantages are evident in its infrastructure investments, with capital expenditures of $21.4 billion in the quarter supporting long-term monetization. The company's diverse revenue streams provide stability, though this same diversification may limit the upside potential from any single technology trend. Azure's strong performance demonstrates Microsoft's ability to capture enterprise AI workloads, but the company's massive size means incremental growth from agentic AI represents a smaller percentage impact on overall Zacks Consensus Estimate for Microsoft's fiscal 2025 earnings is pegged at $13.36 per share, indicating a 13.22% year-over-year increase. Microsoft Corporation price-consensus-chart | Microsoft Corporation Quote Find the latest EPS estimates and surprises on Zacks Earnings Calendar. Pegasystems presents a compelling pure-play opportunity in enterprise agentic AI with its specialized focus on workflow automation and legacy system modernization. The company's first-quarter 2025 results showcased accelerating momentum, with Annual Contract Value (ACV) growing more than 13% year over year and Pega Cloud ACV surging 23%. The company generated exceptional free cash flow of $202 million, demonstrating the profitability of its subscription model revolutionary Blueprint platform represents a breakthrough in agentic AI applications, enabling organizations to automatically analyze and convert legacy system assets into modern cloud applications. This addresses a massive market opportunity, as Pega research indicates 88% of IT decision makers cite technical debt as impacting competitive agility. The enhanced Blueprint capabilities now leverage agentic AI to ingest diverse inputs, including videos, documentation, code, and UI screens, dramatically accelerating digital transformation timelines from months to company's focused approach to enterprise workflow automation positions it perfectly for the agentic AI revolution. Unlike broader platform providers, Pega has built its entire value proposition around intelligent automation and decision-making, making agentic AI a natural evolution rather than an add-on feature. With over 1,000 new Blueprints created weekly — more than double the rate from months earlier — customer adoption is accelerating rapidly. The company's smaller scale means successful agentic AI implementations can drive significant percentage growth in key Zacks Consensus Estimate for PEGA's 2025 earnings is pegged at $1.88 per share, indicating a 24.5% year-over-year increase. Pegasystems Inc. price-consensus-chart | Pegasystems Inc. Quote Recent market performance reveals a telling divergence between the two stocks, with Pegasystems significantly outpacing Microsoft over the past three months. PEGA shares have surged 39.5% compared to Microsoft's 26% rise, with Pegasystems also outperforming the broader Zacks Computer and Technology sector. This superior price performance reflects growing investor recognition of Pega's specialized positioning in the agentic AI market and the accelerating adoption of its Blueprint platform Image Source: Zacks Investment Research The valuation metrics present an intriguing contrast that further supports Pegasystems' investment appeal. Microsoft trades at a price-to-earnings ratio of 32.93x, commanding a significant premium that reflects its market dominance and diversified revenue streams but also suggests limited valuation expansion potential. In stark contrast, Pegasystems trades at a more modest 13.2x P/E multiple despite its stronger recent performance and focused exposure to high-growth agentic AI applications. Image Source: Zacks Investment Research While Microsoft offers stability and comprehensive AI capabilities, Pegasystems presents superior upside potential for the second half of 2025. Pega's specialized focus on enterprise workflow automation aligns perfectly with agentic AI capabilities, creating a more concentrated exposure to this transformative technology. The company's accelerating ACV growth, innovative Blueprint platform, and smaller scale mean that successful agentic AI adoption can drive outsized returns. Investors should consider buying Pegasystems stock to capitalize on its focused agentic AI strategy while holding or waiting for better entry points in Microsoft, where AI represents incremental rather than transformational growth potential. PEGA currently sports a Zacks Rank #1 (Strong Buy), whereas MSFT has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microsoft Corporation (MSFT) : Free Stock Analysis Report Pegasystems Inc. (PEGA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 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
16-05-2025
- Business
- Yahoo
Zacks Investment Ideas feature highlights: Microsoft, Apple, Nvidia and Broadcom
Chicago, IL – May 16, 2025 – Today, Zacks Investment Ideas feature highlights Microsoft MSFT, Apple AAPL, Nvidia NVDA and Broadcom AVGO. 2025 has been anything but uneventful. Stocks began correcting early in the year when China's 'DeepSeek' AI platform upended the bull thesis and brought 'Mag 7' valuations back to Earth. Then, President Trump's 'Liberation Day' led to washout selling even where the major indices briefly went into 'bear market territory.' Since then, trade deals have begun to trickle in, and most importantly, tensions between the US and China have thawed. Though bulls are in control of the primary trend, US equities may be due for a pullback for three reasons, including: Last month, I pointed out several times to Technology Innovator service subs that sentiment had neared rock bottom levels. For example, the CNN Fear & Greed Indicator, which combines seven different market indicators to derive what emotion drives the market, registered its most 'Fearful' in several years. However, it can be breathtaking what simple price appreciation can do to sentiment. In just a few weeks, sentiment has flipped to near 'Extreme Greed' levels. Beaten-down big-tech stocks within the Nasdaq 100 like Microsoft, Apple, Nvidia and Broadcom have rebounded viciously off the tariff-panic lows. That said, in the short-term, the Relative Strength Index suggests that they may be overheated. Historically, when 24% or more of Nasdaq 100 stocks have an RSI reading above 70, returns one week later are negative. The S&P 500 Index has been up more than 20% since the April 7th panic lows. To put that in context, the S&P 500 Index historically returns roughly 10% on average annually. While the bulls have regained control, markets never go straight up. The S&P 500 and other major indices are approaching their .786 Fibonacci retracement levels – an area where markets tend to pause. In addition, the S&P is approaching old supply levels that may take time for bulls to chew through. Rapidly shifting sentiment, extreme overbought conditions, and key resistance levels suggest that investors should proceed with a fair degree of caution in the short-term. Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year. Today you can access their live picks without cost or obligation. See Stocks Free >> Media Contact Zacks Investment Research 800-767-3771 ext. 9339 support@ Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit for information about the performance numbers displayed in this press release. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
