Microsoft Corp (NASDAQ:MSFT) shares surged more than 7% on Wednesday postmarket after the tech giant posted better-than-expected fiscal first-quarter results, driven by accelerating demand for its cloud and AI services and a record-breaking performance in gaming revenue. The company reported revenue of $70 billion for the quarter ended March 31, up 13% from a year earlier and above analysts' expectations of $68.4 billion, according to LSEG data.
CNBC's Steve Kovach joins 'Closing Bell: Overtime' to discuss earnings for Microsoft and Jon Fortt goes over Qualcomm's earnings.
Microsoft reported its third-quarter results on Thursday, surpassing analysts' estimates. The company reported $70.1 billion in revenue and earnings per share of $3.46.
Microsoft topped market estimates for quarterly revenue on Wednesday, boosted by steady demand for its cloud services as businesses ramped up spending on artificial-intelligence tools.
Earnings for two of the U.S.' handful of trillion-dollar companies will come out Wednesday afternoon as Meta and Microsoft will update investors, kicking off a crucial week for on-edge big technology stocks as tariffs complicated investor appetite for artificial intelligence-driven growth.
Microsoft on Wednesday committed to boosting its presence in Europe and protecting European citizens' data against a backdrop of rising "geopolitical volatility."
Wall Street stocks are predicted to head back lower on Wednesday as slivers of optimism come face to face with hard numbers in corporate earnings. While Dow Jones futures were just above flat, those for the S&P 500 were down 0.3% and for the Nasdaq 100 were 0.6% in the red.
"Even when we've lost cases in European courts, Microsoft has long respected and complied with European laws," Microsoft President Brad Smith said in a blog post on Wednesday. Smith's comments are part of a charm offensive Microsoft is making in Europe this week, after tensions between the United States and European Union ratcheted up over trade tariffs.
Nvidia stockholders will be hoping Meta and Microsoft stick to, or even raise, their guidance for capex and signal they will continue investing in AI data centers.
Microsoft plans to expand its data-center capacity within the EU over the next two years, with a view to having cloud operations in more than 200 data centers across the region.
Microsoft respects European laws including landmark legislation seeking to rein in the power of Big Tech, its President Brad Smith said on Wednesday, putting the company at odds with the White House, which has criticised sanctions related to EU rules.
Microsoft is scheduled to report third-quarter financial results after the stock market closes on Wednesday.