Fubotv earnings beat by $0.10, revenue topped estimates
On Thursday, DA Davidson analyst Gil Luria increased the price target for Microsoft stock (NASDAQ:MSFT) to $500 from the previous $450, while maintaining a Buy rating. With a current market capitalization of $2.94 trillion and trading at a P/E ratio of 31.3x, Microsoft appears slightly overvalued according to InvestingPro Fair Value estimates. The revision follows Microsoft’s reported total revenue of $70.1 billion, a growth of 13.3% year-over-year, surpassing market expectations.
Microsoft’s performance this quarter was noteworthy, with Azure leading the charge. The company’s overall financial health is rated as "GREAT" by InvestingPro, with particularly strong scores in profitability (4.29/5) and growth (3.16/5). Microsoft 365 Consumer products and cloud services saw growth accelerate into low-teens, and Dynamics 365 continued to post high-teens growth. Additionally, search and news advertising revenues are on the rise, now growing at 23% year-over-year in constant currency.
The company’s management emphasized the increasing usage of both PostgreSQL and CosmosDB. Microsoft Fabric’s analytics consumption soared by 80% year-over-year, now serving over 21,000 paying customers. The uptake of Copilot has been strong, with usage tripling year-over-year, and there is a positive outlook on the newly introduced Agents product suite.
Looking ahead, Microsoft’s management provided guidance for the next quarter, projecting Productivity and Business Processes (PBP) revenue growth at 11.5% year-over-year in constant currency, Intelligent Cloud (IC) revenue growth at 21% year-over-year, and More Personal Computing (MPC) revenue to decline by 21% year-over-year, all at the midpoint. With a five-year revenue CAGR of 14% and maintaining dividend payments for 23 consecutive years, Microsoft demonstrates strong long-term growth potential. They noted consistent trends through April, with expectations for these to persist throughout the fourth quarter. For deeper insights into Microsoft’s valuation and growth metrics, including 12 additional ProTips, check out the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Microsoft Corporation reported its fiscal Q1 2025 earnings, significantly surpassing analysts’ expectations. The company achieved an earnings per share (EPS) of $3.46, exceeding the forecasted $3.23, while its revenue reached $70.1 billion, surpassing the anticipated $68.53 billion. This positive performance was driven by strong demand for Microsoft’s cloud and AI services. Microsoft Cloud revenue alone grew by 20-22%, highlighting robust growth in this sector. Additionally, the company introduced innovations like the Majorana One quantum computing initiative, further emphasizing its commitment to technological advancement.
In another development, Microsoft’s strategic investments in data centers and AI capabilities have positioned the company as a leader in the tech sector. During the earnings call, analysts discussed Microsoft’s data center strategy and capacity planning, reflecting the company’s focus on sustaining growth and innovation. Despite potential AI capacity constraints, Microsoft remains optimistic about continued growth in cloud and AI services. Analyst firms such as Morgan Stanley (NYSE:MS) and Jefferies have shown interest in Microsoft’s strong performance and future prospects, particularly in the cloud migration and AI sectors.
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