Microsoft's FY25 Q2 earnings reveal a decline in Xbox hardware revenue, while content and services revenue has increased. The company posted its latest earnings report on Wednesday, January 29, 2025.

Microsoft on Wednesday forecast disappointing growth in its cloud computing business, sending its shares down 4.5% in after-hours trading as investors worry about big spending, elusive artificial intelligence revenue and competition from cheaper AI models from China.

Microsoft shares fell in Europe on Thursday after it issued a downbeat forecast for its cloud business, while Facebook parent Meta shares rose after beating expectations, as investors scrutinised the companies' spending on artificial intelligence.

By Aditya Soni and Deborah Mary Sophia (Reuters) -Days after Chinese upstart DeepSeek revealed a breakthrough in cheap AI computing that shook the U.S. technology industry, the chief executives of Microsoft and Meta defended massive spending that they said was key to staying competitive in the new field.

The tech giant’s revenue was up 12 percent to $69.6 billion, but investors are showing their nerves after a long boom for tech stocks.

Microsoft’s cloud and AI businesses are doing pretty well — and their impact is being felt across the company. In its Q2 2025 earnings, Microsoft announced revenue of $69.6 billion for the quarter, up 12 percent year-over-year, and net income of $24.1 billion, which is up 10 percent year-over-year.

Satya Nadella thinks that AI will scale after DeepSeek’s secrets become commoditized

Microsoft has confirmed that its latest security update for Windows has a bug that is affecting audio, especially when using a USB audio DAC.

Microsoft is testing a better integration between iPhone and Windows 11 PCs. Here is what the iPhone Mirroring-ish feature will look like.

Microsoft will report its fiscal second-quarter results after Wednesday's closing bell, with investors focused on all things AI.