Surprise after the red light? AI strongly supports microsoft Q3 Azure revenue growth of over 30%, but expects Q4 growth to slow down, with increased AI spending.
In the third quarter, Microsoft's total cloud revenue grew by 22% year-on-year, exceeding expectations. AI contributed to a 12 percentage point increase in Azure, higher than the second quarter; Excluding the impact of exchange rates, Azure cloud revenue increased by 34% in the third quarter, slightly slower than the second quarter but still above expectations. However, it is expected that Azure's revenue growth in the fourth quarter will further slow to 31%-32%; Capital expenditures accelerated in the third quarter, with a year-on-year increase of nearly 79%, and is expected to increase quarter-on-quarter in the fourth quarter. The stock price initially rose by over 2% after market trading, but later dropped by over 4%.
AI cloud "boosts" microsoft performance, but weak outlook leads to stock price decline! Is investing in AI a blessing or a curse?
On Wednesday in post-market trading Eastern Time, Microsoft released its performance report for the first quarter of the 2025 fiscal year. The data shows that Microsoft's quarterly revenue was $65.585 billion, a 16% year-on-year increase, with an eps of $3.3, a 10% year-on-year increase, both of which exceeded market expectations.
Express News | HSBC: Raised microsoft's target price from $533 to $554.
Officially challenging Google! OpenAI launches ChatGPT search function, supported by major media such as News Corporation and Associated Press.
The search feature will be first launched for the paid version of ChatGPT Plus and Team, and will be available to all free users in the coming months; ChatGPT can search the web based on user queries, and users can also manually search by clicking on the search icon.
Express News | Microsoft : HSBC Raises Target Price to $554 From $533
News Highlights: Top Company News of the Day - Friday at 1 AM ET