See the full story in the original article.
Read the original on Yahoo Finance ↗
Keywords
Open a keyword to see other news on the same topic.
Related tickers and likely impact
MSFT
• NeutralMicrosoft
Relevance: high
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Systems Software |
| Market cap | $3.9T |
| Close on 10/28/2026 | 530.83 |
| Change that session | -0.09% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- MSFT Stock Gains 3% After-Hours As AI Demand Powers Q1 Cloud Revenue, Q2 Guidance Beat With Positive Cash Flows
- Microsoft beats expectations fueled by Azure cloud business
Microsoft shares rose more than 5% on Wednesday afternoon after the company reported revenue and profit above expectations, driven by its Azure cloud unit, which grew 48% in the September quarter. Total revenue reached $92.3 billion and profit exceeded $36.6 billion, compared with FactSet analyst estimates of about $90.6 billion and $35.1 billion. Days earlier, Microsoft offered voluntary buyouts to about 60,000 employees, roughly a quarter of its workforce, its second such offer this year. Headcount fell to 223,000 at the end of June from 228,000 at the end of 2025. Capital expenditures reached $45.2 billion, mostly on short-lived assets such as memory chips and storage, and the company expects more than $50 billion in the final quarter of 2026, bringing full-year spending to $170 billion.
- Microsoft's Satya Nadella says 24 new data centers built during Q1
Microsoft CEO Satya Nadella said on the company's Q1 earnings call that it built 24 new data centers across five continents as AI demand accelerated. He said the infrastructure is a fungible fleet that lets Microsoft dynamically allocate capacity across compute, data, foundry and Copilot. Time from dock to live for new GB300s in its biggest regions fell by about 20% quarter over quarter. Through optimizations across data center design, silicon, systems, software and models, throughput for Copilot workloads rose more than 50% quarter over quarter.
- Microsoft just shared Azure's actual revenue in dollars: $33.2 billion
For the first time, Microsoft disclosed Azure's quarterly revenue in dollars, at $33.2 billion for the July–September quarter, up 48% from a year earlier. The figure lets investors compare Azure more directly with Amazon Web Services and Google Cloud, whose parent companies already report cloud revenue in dollars each quarter. Google Cloud brought in $30.7 billion in the same quarter, putting Azure slightly ahead, though Google Cloud grew about twice as fast, according to TechCrunch's calculations. Azure accounted for roughly 36% of Microsoft's $92.3 billion in quarterly revenue and beat analysts' expectations of $32.3 billion by about $850 million. Azure sits in the new Agents and Infra segment, which brought in $76.8 billion, up 25%.
- Microsoft recorded $10 billion in revenue from OpenAI
Microsoft reported $10 billion in revenue from its commercial arrangements with OpenAI, including revenue-sharing payments, in the quarter ended September 30, nearly 11% of its $92.3 billion total quarterly revenue. For the full 2026 fiscal year, OpenAI-related revenue reached $24.1 billion, and at the latest quarterly pace Microsoft would earn about $40 billion a year from these arrangements. Its receivables from OpenAI rose to $7.2 billion at the end of September from $6 billion at the end of June, reflecting amounts owed for past transactions rather than new revenue. The filing does not show how much came from revenue sharing versus Azure cloud services. Under an April 2026 agreement, OpenAI will keep sharing revenue with Microsoft through 2030, subject to a cap, while Microsoft's stake fell from about 25% in June to 24% in September, with no cause specified.
- Microsoft hits 10 quarters of record- breaking revenue in a row
Microsoft reported record quarterly revenue of $92.3 billion, up 19% year over year, its 10th straight quarter of record revenue, and net income of $36.6 billion, up 32% on a GAAP basis. Microsoft Cloud revenue reached $63.9 billion, up 30%, with Azure at $33.2 billion and Microsoft 365 nearly $28 billion, though the article notes not all of this is AI-related. Devices and Consumer revenue fell 3% to $15.5 billion, with Windows OEM and devices revenue down 22%. The article says a good chunk of revenue is AI-related, including $10 billion from OpenAI, and commercial remaining performance obligation rose 73% to $677 billion. Capital expenditures reached a record $45.2 billion in the quarter.
Related markets
Latest news
- Marvell Wants Lumentum. Here’s Why Coherent Could Win.
Bloomberg reported on October 28 that Marvell is in advanced discussions to acquire Lumentum, though no definitive agreement has been announced. Lumentum shares rose sharply on the news while Marvell fell in after-hours trading, and Coherent gained about 3.5% after hours. Per Bloomberg’s October 9 report, Lumentum’s optical capacity is effectively sold out through early 2029, and CEO Michael Hurlston said the company could not meet about 70% of expected demand for certain products through 2027. The article argues that a Marvell–Lumentum deal could make Coherent’s independent manufacturing more valuable, especially since Nvidia has invested $2 billion in Coherent.
- Google Cloud Revenue Just Grew 103%, so Why Is the Stock Falling?
Alphabet reported third-quarter results after the market close on Wednesday. Revenue rose 25% to $127.6 billion, below analyst estimates of $127.9 billion, while diluted EPS of $2.12 fell 26% against expectations of $3.01. Operating income climbed 30% to $40.6 billion. Google Cloud revenue soared 103% to $30.7 billion, with an operating margin of 36.2%, and CEO Sundar Pichai cited huge demand for AI infrastructure. The EPS decline mainly reflected an $8.2 billion loss on equity investments, including SpaceX, compared with gains of nearly $12.8 billion a year earlier. Alphabet expects capex of about $200 billion in 2026 and $300 billion in 2027, leaving free cash flow at -$9.1 billion, and the stock fell as much as 11% after hours.
- 2 Millionaire-Maker Custom Silicon Stocks Powering the AI Infrastructure Supercycle
The article profiles Broadcom and Taiwan Semiconductor Manufacturing (TSMC) as leading custom-silicon players. Broadcom, which partners with Alphabet on TPUs and counts Meta, OpenAI, and Anthropic among its ASIC customers, reported third-quarter AI semiconductor revenue up 221% to $16.7 billion and net income up roughly 216% to $13.1 billion. It expects fourth-quarter AI revenue to rise 236% to $21.7 billion, and the stock trades at about 28 times expected earnings this year. TSMC manufactures chips designed by its customers and, according to many estimates, controls over 90% of the high-end AI chip market. Its stock has delivered a total return of roughly 4,720% over 15 years. The author notes that both stocks' valuations have been volatile amid AI bubble concerns, while their market positions remain strong.
- Bel Fuse (BELFA) Stock Sees Modest Fair Value Lift As Analysts Rework Targets
Bel Fuse's estimated fair value has moved from US$313 to US$326, in line with recent Street targets of US$326 to US$335. Northland raised its target to US$326, calling it another strong quarter with a better-than-expected Q3 sales outlook. JPMorgan kept an Overweight rating but cut its target twice, most recently from US$380 to US$330 in October 2026, a more cautious stance on how current risks and execution uncertainties may cap valuation. Model assumptions were also updated: revenue growth from 11.53% to 11.94%, net profit margin from 20.57% to 20.35%, future P/E from 33.59x to 34.87x, and discount rate from 8.82% to 8.70%.
- 3 Founder Led Stocks With At Least 22% Earnings Growth
The article looks at three founder-led businesses as AI spending draws scrutiny after Alphabet reported negative free cash flow of US$9.07 billion and raised its AI infrastructure capex guidance. Sansan, a Japanese SaaS group founded by Chika Terada, generates about ¥48.9 billion from its Sansan and Bill One segment, with a market value near ¥273.9 billion. Spotify Technology, where Daniel Ek still shapes the long-term vision, earns about €18.8 billion in revenue, mostly from Premium subscriptions, and is valued near US$114.2 billion. China Medical System Holdings, controlled by Treasure Sea Limited, generates about CN¥7.3 billion from its Integrated Business and is valued near HK$24 billion. The article argues founder leadership may encourage more careful capital protection and highlights capital allocation and AI strategy as key questions for these companies.
- October 29: What to Read Before the Stock Market Opens
A roundup of domestic and international financial news from the past 24 hours. In Vietnam, Digiworld (DGW) reported third-quarter profit up 66% to VND 276 billion, though its shares still fell to the floor price, while Thế Giới Di Động (MWG) posted third-quarter net profit up 75% to nearly VND 3.1 trillion, and VIB reached nearly VND 7,600 billion in nine-month pre-tax profit, up 8%. Pi Group's PDCC repurchased VND 900 billion of bonds before maturity, spending nearly VND 996.3 billion. Globally, Beijing is urgently seeking to support its weakening stock market amid an AI sell-off, while the US pending home sales index fell 7.3% to 66.0 points in September 2026, its lowest since 2001.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.