Microsoft’s profit (MSFT) Q2 2025

Microsoft The shares fell up to 5 % in the trading on Wednesday after the software company released the results of the second quarter, which included lighter growth in the AZURE cloud computing services, which was expected. The company also provided a disappointing quarterly annual revenue.

Here’s how the company compared to Wall Street’s expectations, based on a survey of analysts by LSEG:

• Arrow’s profits: $ 3.23 for $ 3.11 expected
• profit: 69.63 billion dollars for 68.78 billion dollars expected

Regarding the guidance, Amy Hood, Microsoft President, called for 67.7 billion dollars to $ 68.7 billion in the revenue of the third fiscal quarter compared to the consensus of 69.78 billion dollars from LSEG.

Microsoft’s revenues grew by 12.3 % on an annual basis in the second quarter of the fiscal year, which ended on December 31, according to L. statement. This represents the slowest growth since mid -2013. The net income of $ 24.11 billion increased from 21.87 billion dollars in the same quarter of last year.

The company’s smart cloud sector, which contains the Azure cloud, contributed $ 25.54 billion in revenue. This increased about 19 %, but less than a consensus of $ 25.83 billion among analysts included in Street Street.

The revenues of Azure and other cloud services jumped by 31 %, a decrease from 33 % in the previous quarter. Microsoft now has an annual operating rate of $ 13 billion for artificial intelligence, and it was quoted by CEO Satia Nadila as saying in the statement.

From growth in the second financial quarter, 13 percentage points of artificial intelligence came. Microsoft does not reveal Azure’s revenues in dollars. Analysts included by CNBC and Streetaccount were looking for a growth of 31.9 % and 31.1 %, respectively.

For the third financial quarter, HOOD is 31 % to 32 % in the growth of Azure in a fixed currency, as the company addresses implementation challenges and continues to withstand capacity restrictions. The street consensus in the fixed currency was 33.4 %. In October, Hood said that the growth of Azur will accelerate in the second half of the fiscal year compared to the first half.

Microsoft may renew its sales function to better address market conditions.

Hood said: “In the first place, these agents we get through the partners and through some indirect methods for sale.” “In fact, the technical model exists because these customers who reach this method are trying to balance. Suggestions in the summer have really changed to try to balance these two.”

Microsoft’s production and commercial operations sector, which includes office and LinkedIn production programs, has published $ 29.44 billion in second -quarter revenues. This increased by 13.9 % and more than the consensus of Street Street $ 28.89 billion.

The more the personal computing unit, which includes Windows, Bing, Surface and Xbox, achieves $ 14.65 billion in revenues. The number was flat on an annual and higher basis than the consensus of the street of $ 14.29 billion.

The sales of the hardware and the license of the Windows operating system of hardware makers increased by 4 %. Researcher in the technology industry Gartner estimated Computer shipments increased 1.4 % in a quarter.

The company has reached $ 15.80 billion in capital expenditures in the second quarter, with the exception of financial rental contracts. The consensus was among the analysts surveyed by the alpha visual, 15.70 billion dollars.

Microsoft has 2.29 billion dollars in the “other expenses” line. In October, Hood expected $ 1.5 billion in “other expenses”, mainly due to the Microsoft share of the expected losses in Openai, which has invested Microsoft nearly $ 14 billion so far.

During the second financial quarter, Microsoft has announced the Windows 365 Cloud link, a computer that workers can use to access their applications and files stored in the cloud. The company’s GitHub unit, which includes 150 million developers, has announced its support for artificial intelligence models of anthropology and Google For Chatbot programming as well as the current support for Openai. Microsoft has also invested an additional $ 750 million in Openai during the quarter.

“Openai more soon, so stay tuned,” Nadella said at a phone conference.

Microsoft shares fell 2 % on Monday as investors considered the effects of artificial intelligence models from Deepseek, a Chinese laboratory. Deepseek presented in December an open source model that the laboratory said was trained on $ 5.6 million, except for previous data and research costs. This would make it more efficient than the models than major American companies. Last week, Dibsic said its latest model, R1, outperformed Openai in some tests.

Nadila said in the call, the Deepseek R1 is now available through Microsoft Ai Foundry and through GitHub, and it will soon be available to operate Copilot+ PCS.

He said: “The coding laws continue to multiply through both the pre -training and inference at the expense of time.” “We ourselves see great gains in efficiency in both training and reasoning for years until now. On the inference, we usually saw more than 2x performance performance in perfection generation and more than 10x per generation of models.”

Before issuing profits, Microsoft shares increased by 5 % so far in 2025, while the S&P 500 has gained about 3 % in the same period.

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