Microsoft Beats Market Expectations, Falls 2% After Hours

Microsoft, the world's largest software company, announced its quarterly results on October 29 (local time), surpassing market expectations.

According to the earnings report released by Microsoft for the first quarter of fiscal year 2026 (July to September 2025), the company posted revenue of 77.7 billion dollars and earnings per share (EPS) of 4.13 dollars.

Reuters Yonhap News

The average Wall Street estimate had been revenue of 75.33 billion dollars and EPS of 3.67 dollars.

Although Microsoft reported results that exceeded market expectations, investor concerns are intensifying as spending on artificial intelligence (AI) infrastructure has surged to an all-time high. Microsoft spent 34.9 billion dollars on capital expenditures in the first quarter, a significant increase compared to 24 billion dollars in the previous quarter. Reuters pointed out that this increase in spending is heightening investor worries that the costs required to sustain the AI boom are soaring.

On the New York Stock Exchange that day, Microsoft shares closed down 0.1 percent from the previous day, and in after-hours trading, the stock was trading around 529 dollars, down 2.32 percent.

This content was produced with the assistance of AI translation services.