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MSFTcloud computingartificial intelligenceearnings
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Related tickers and likely impact
MSFT
▲ Likely positiveMicrosoft
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% |
NVDA
▲ Likely positiveNvidia
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.1T |
| Close on 10/28/2026 | 215.39 |
| Change that session | -1.17% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- 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 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.
- Microsoft beats Wall Street estimates as Azure growth hits 48%
Microsoft (NASDAQ:MSFT) reported first-quarter revenue of $92.3 billion, up 19% and above the $90.69 billion analysts expected; adjusted earnings per share rose 18% to $4.89, versus an estimate of $4.73. Azure and other cloud services revenue grew 48% to $33.2 billion, above the roughly 45% growth analysts had forecast, while Microsoft Cloud revenue rose 30% to $63.9 billion. Capital expenditure was $39.4 billion, below the $46.59 billion expected, and commercial remaining performance obligation reached $677 billion, short of the $705.6 billion estimate. Microsoft also recorded a $207 million net gain tied to OpenAI and returned $10.2 billion to shareholders; shares rose over 5% in after-hours trading.
- Microsoft Tops Quarterly Estimates As Azure Growth Accelerates
- Microsoft earnings live: Microsoft to report Q1 earnings with Wall Street looking for further Azure growth
Microsoft (MSFT) will report first-quarter earnings after the bell on Wednesday, the first report under its new segments, Agents and Infra and Devices and Consumer. Bloomberg analyst consensus expects EPS of $4.27 on revenue of $90.6 billion, versus EPS of $4.13 and revenue of $77.6 billion in the same period last year. Agents and Infra revenue is expected to rise 22.5% to $75.6 billion, with Azure and Microsoft 365 expected to bring in $32.2 billion and $27.4 billion, respectively, while Devices and Consumer sales are projected to fall 6% to $15 billion. Capital expenditures, including leases, are expected to top $45.9 billion, up from $19.3 billion a year earlier, and remaining performance obligations are expected at $705.6 billion, up 77% from $389 billion. Investors will be watching Azure and Copilot growth as Microsoft pushes its AI services.
- Alphabet & Microsoft Earnings Preview: AI Cloud Growth Takes Center Stage
Alphabet and Microsoft report quarterly results after the close on Wednesday, October 28, with investors watching whether AI cloud demand justifies heavy infrastructure spending. Zacks expects Alphabet to post Q3 EPS of $2.94, up more than 2%, with revenue excluding traffic acquisition costs rising nearly 28% to $111.8 billion and Google Cloud revenue up 92% to $29.15 billion. Alphabet forecasts annual capital spending of $195-$205 billion. Microsoft is expected to report fiscal first-quarter EPS of $4.71, up 14%, and revenue of $90.58 billion, up more than 16%, with Azure growth guided to 44-45% in constant currency. The article adds that quarterly capital expenditures could exceed $50 billion, and that higher depreciation and AI infrastructure costs could pressure cloud margins.
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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.
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