We continue to believe that Microsoft remains uniquely positioned to monetize the vast new AI opportunity across applications,” writes BofA Securities analyst Brad Sills.
Microsoft will report its fiscal second-quarter results after Wednesday's closing bell, with investors focused on all things AI.
Microsoft posted strong Q2 2025 earnings, beating expectations with robust cloud and AI growth, though it faces challenges in maintaining its Cloud segment's rate of growth.
Shares in Microsoft fell 5% in afterhours trading as the tech giant said its flagship cloud computing business experienced a slowdown in growth last quarter. The takeaways: The company’s overall revenue rose 12% to $69.
Microsoft (NASDAQ:MSFT) has lagged behind the NASDAQ over the past year but is off to a strong start in 2025, outperforming the broader market.
Since Microsoft reported fiscal Q1 earnings on Oct. 30, Wall Street analysts have trimmed their Q2 estimates but are now more bullish on the stock. Of the 60 analysts surveyed by FactSet who cover Microsoft,
Microsoft reported that its flagship cloud computing business experienced a slowdown in growth amid constraints on data center supply.
Microsoft shares dropped 5 per cent, while Meta was up 2 per cent after their October-December Q1 results, both companies posted profits, according to AP reports.
ServiceNow (NOW) expects $2.995 billion to $3 billion in subscription revenue for the first quarter, while analysts were projecting $3.031 billion. For the first quarter, revenue in that category amounted to $2.866 billion, up 21% but slightly below the $2.879 billion consensus view.
The S&P 500, a gauge of U.S. large-cap stocks, notched a record closing high of 6,118.71 on Jan. 23, according to Dow Jones Market Data. Big Tech stocks have massive market values, translating into outsize weighting in the S&P 500 index.
The company is scheduled to report its second-quarter financial results after the stock market closes on Wednesday.