Software
Microsoft Fiscal Q2 Earnings: Accelerating Growth, AI in the Spotlight
Microsoft kicks off Big Tech’s earnings alongside AMD and Alphabet, with AI in the spotlight as the company posted a sizable beat last quarter while seeing “higher-than-expected AI consumption.” Revenue and EPS estimates have inched higher, with the current revenue estimate of $61.1 billion slightly above management’s guide for $60.9 billion, highlighting the optimism the Street has on AI-related tailwinds. Azure and Copilot will be closely watched, as Intelligent Cloud drove $850M of Microsoft’s ~$2 billion beat in fiscal Q1 due to AI tailwinds, while analysts are optimistic on Copilot creating a new stream of revenue over the next few fiscal years. Microsoft has been a big investor in scaling its data center and AI capabilities, and the Street is looking for these investments to bear fruits in Q2.
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