Microsoft Earnings Preview: A Look Ahead to Q2 Fiscal Year 2025
As the market awaits Microsoft’s (MSFT) second fiscal quarter earnings report, set to be released after the market closes on Wednesday, investors are bracing themselves for a potential impact on the company’s stock price. On Friday, the tech giant’s shares closed at $444.06 per share, down 0.6% from the previous trading day.
Revenue Projections: A Billion-Dollar Quarter?
Analysts’ estimates compiled by FactSet (FDS) suggest that Microsoft is expected to report a staggering $68.9 billion in revenue for the second quarter of fiscal year 2025. Additionally, net income for the quarter ended in December is estimated to reach $23.3 billion, with earnings per share projected at $3.11.
Autonomous Agents and AI Infrastructure
In recent months, Microsoft has made significant strides in artificial intelligence (AI) development. In October, the company announced that customers would be able to build their own autonomous agents in Copilot Studio, capable of understanding and acting on their behalf. Furthermore, Microsoft introduced 10 new autonomous agents for its enterprise platform, Dynamics 365, designed for workers in sales, service, finance, and supply chain management.
Stargate: A $500 Billion AI Infrastructure Project
Microsoft has joined forces with other tech giants, including its long-standing partner OpenAI, on a massive $500 billion AI infrastructure project called Stargate. Announced by President Donald Trump last week, the project aims to revolutionize AI capabilities. As a key technology partner, Microsoft will continue to provide Azure cloud computing services to OpenAI, while also gaining the right of first refusal for new capacity.
A New Era for Microsoft and OpenAI
The agreement between Microsoft and OpenAI marks a significant shift in their partnership. Microsoft, OpenAI’s largest investor, will no longer be the exclusive compute provider. Instead, OpenAI will have the ability to build additional capacity, primarily for research and training of models. This move is expected to further support OpenAI’s growth and development.
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