"Shares of Microsoft (NASDAQ:MSFT) lost 1.58% over the past five trading sessions after losing 1.52% the five prior. That brings MSFT's year-to-date gain to 14.13%, including a nearly 35% gain since its year -to-date low on April 8. When the Magnificent Seven member reported FY 2026 Q1 earnings on Oct. 29, shares fell despite beating on EPS and revenue. The company announced earnings of $3.72 per share versus analysts' expectations of $3.67, and quarterly revenue of $77.67 billion versus analysts' expectations of $75.33 billion."
"Third-quarter earnings showcased robust demand for its Intelligent Cloud segment, though tariff risks linger. Microsoft's $80 billion cash reserve fuels its $80 billion investments in cloud and AI infrastructure, with over half in the U.S. Its Microsoft 365 Copilot, adopted by , drives productivity revenue, positioning Microsoft to capture the AI market's 37% compounded annual growth predicted through 2030. Similarly, partnerships with over 70% of Fortune 500 firms Oracle for multi-cloud solutions bolster its competitiveness against Amazon's (NASDAQ:AMZN) AWS."
Microsoft shares have recently dipped while maintaining a 14.13% year-to-date gain and about a 35% rise since the April low. Fiscal Q1 FY2026 results beat expectations with $3.72 EPS and $77.67 billion revenue, yet shares fell after the release. Gaming revenue remains material, supported by 50 million monthly Game Pass subscribers and nearly $5 billion year-over-year gaming revenue; Game Pass prices increased by 50%. The company implemented workforce reductions of roughly 3% to control costs. Microsoft holds substantial cash reserves and is investing heavily—about $80 billion—in cloud and AI infrastructure, expanding data centers including a $400 million commitment in Switzerland, and pursuing AI adoption through Microsoft 365 Copilot and multi-cloud partnerships.
Read at 24/7 Wall St.
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