From CNBC: 2025-01-29 12:00:01

Microsoft is set to report fiscal second-quarter results, with analysts expecting $3.11 earnings per share and $68.78 billion in revenue, representing an 11% growth year over year. Azure cloud growth will slow down due to a third-party provider delay. Microsoft invested $750 million in OpenAI during the quarter. CEO Satya Nadella committed $80 billion to AI infrastructure this year. Microsoft shares are up 6% in 2025.

During the fiscal second quarter, Microsoft introduced the Windows 365 Cloud Link for cloud-based desktops and announced support for AI models from Anthropic and Google in its GitHub unit. Analysts may question why Microsoft did not participate in the Stargate AI infrastructure project press conference, which could attract up to $500 billion in investment.

Microsoft shares slipped 2% as investors considered the implications of AI models from DeepSeek, a Chinese lab. DeepSeek introduced an open-source model trained for $5.6 million, making it more efficient than models from major U.S. companies. Microsoft CEO Satya Nadella highlighted the importance of developments in China and committed to significant spending on AI infrastructure.

Executives will discuss quarterly results and guidance in a conference call at 5:30 p.m. ET. Stay tuned for updates on Microsoft’s performance and future outlook.



Read more at CNBC:: Microsoft (MSFT) Q2 earnings report 2025