From Yahoo Finance: 2025-05-05 05:10:00

Microsoft reported impressive quarterly results, reaffirmed its second-half fiscal 2025 capital expenditure guidance, and expressed long-term optimism in AI and cloud computing. The company’s stock has rebounded positively despite previous dips due to market sell-offs. Microsoft’s quarterly revenue increased by 16%, operating income by 14%, and diluted earnings per share by 10%. Microsoft’s guidance for fiscal 2025 projects strong growth in various segments, including a 21.7% increase in Productivity and Business Processes revenue. Microsoft continues to invest heavily in AI and data centers, with plans to spend $80 billion on AI data centers in 2025. The company leverages AI across its business units and has seen significant user growth in AI services. Despite its focus on AI, Microsoft’s cloud services have also shown strong growth, particularly in non-AI services within Azure. Microsoft’s strong balance sheet, high margins, and reliable capital return program make it a solid choice for investors seeking growth stocks. Microsoft plans to continue investing in long-term projects and rewarding shareholders through dividends and buybacks.



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