Can Cloud Performance Enhance Microsoft Profitability?

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Microsoft Corporation (MSFT) is set to report its Q2 earnings for 2025 this week, with expectations of a 14% growth in earnings per share (EPS) and a 14% increase in sales. The company is expected to generate Intelligent Cloud revenue of $28.9 billion, following a positive trend of 20% year-over-year growth in overall cloud revenue, amounting to $42.4 billion.

Alphabet Inc. (GOOGL) recently reported a strong Q2, noting a 32% year-over-year increase in Google Cloud revenue to $13.6 billion and raising its capital expenditure guidance for the fiscal year to $85 billion, $10 billion higher than previously anticipated. This performance could offer a preview of Microsoft’s upcoming results as both companies navigate significant investments in AI infrastructure.

The earnings season for the S&P 500 is gaining momentum, with several major tech firms expected to release their results soon, including members of the “Mag 7” group alongside Microsoft.

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