After markets closed on Wednesday, shares of Microsoft (MSFT) rose by around 3%. The software giant posted strong fiscal first-quarter results.
Microsoft reported revenue growing by 18.8% Y/Y to 492.28 billion. Revenue from its Agents and Infra jumped by 25% to $76.8 billion. However, revenue in Devices and Consumer fell by3% to $15.5 billion.
Microsoft demonstrated balance sheet discipline compared to its peers. If 60,000 staff take up the company’s buyout package, it will give more room for the firm to invest more in artificial intelligence infrastructure. Furthermore, profit margins from Azure will rise.
Alphabet (GOOGL) dropped by nearly 10% last night. Traders did not respond favorably to the company’s plans to set total capital expenditure in the range of $195 billion to $205 billion. Even more troubling is the warning that capex spending will increase even more in 2027.
ServiceNow (NOW) fell by 18% in after-hours trading after it posted Q3 results. Despite increasing its full-year outlook for subscription revenue and free cash flow margin, NOW stock traded lower last night.
The firm expanded its partnership with OpenAI, where it would help enterprises move from AI reasoning to governed action. The ChatGPT plugin will offer ServiceNow’s customers AI within a workflow context.
The strong results suggest that investors might consider ServiceNow shares as the share price pulls back.
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