Microsoft is a technology company that develops and supports a wide range of software, services, devices, and solutions aimed at empowering individuals and organizations globally. Their offerings include cloud-based solutions, operating systems, productivity and collaboration applications, server applications, business solutions, desktop and server management tools, software development tools, and video games. They also design and sell devices such as PCs, tablets, gaming consoles, and related accessories .
- Intelligent Cloud - Drives substantial growth with Azure and other cloud services, including server products and cloud services .
- Productivity and Business Processes - Includes Office 365 and LinkedIn, with Office Commercial products and cloud services showing consistent growth .
- LinkedIn - Comprises talent solutions, advertising, sales insights, and premium consumer services, contributing significantly to the segment .
- More Personal Computing - Encompasses Windows, devices, and Xbox, with notable revenue increases in Xbox content and services, particularly after the Activision Blizzard acquisition .
You might also like
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Bradford L. Smith ExecutiveBoard | Vice Chair and President | Board Member at Netflix, Inc. | Joined Microsoft in 1993. Leads legal, public policy, and corporate affairs. Advocates for responsible AI and sustainability. Formerly General Counsel. | View Report → |
Satya Nadella ExecutiveBoard | Chairman and Chief Executive Officer | None currently listed | Joined Microsoft in 1992. Became CEO in 2014 and Chairman in 2021. Previously led Cloud and Enterprise, Server and Tools, and other divisions. | View Report → |
Amy E. Hood Executive | Executive Vice President and Chief Financial Officer | None currently listed | CFO since 2013. Delivered strong financial growth, led strategic investments in AI and security, and oversaw shareholder returns. | View Report → |
Judson B. Althoff Executive | Executive Vice President and Chief Commercial Officer | Board Member at Ecolab Inc. | Joined Microsoft in 2013. Leads global commercial business, driving AI adoption and digital transformation. Formerly President of Microsoft North America. | View Report → |
Kathleen T. Hogan Executive | Executive Vice President and Chief Human Resources Officer | Board Member at Alaska Air Group, Inc. | Joined Microsoft in 2003. Leads HR strategy, focusing on employee engagement, diversity, and inclusion. Formerly led Microsoft Services. | View Report → |
Takeshi Numoto Executive | Executive Vice President and Chief Marketing Officer | None currently listed | Joined Microsoft in 1997. Leads marketing strategy. Previously led Cloud Marketing and Office 365 Marketing, driving the transition to cloud services. | |
Carlos A. Rodriguez Board | Director | Executive Chair at ADP | Director since 2021. Chair of the Compensation Committee. Former CEO of ADP. | |
Catherine MacGregor Board | Director | CEO and Director at Engie S.A. | Director since 2023. Leads Engie, focusing on energy transition and sustainability. | |
Charles W. Scharf Board | Director | CEO, President, and Director at Wells Fargo & Company | Director since 2014. Member of the Compensation and Governance Committees. Former CEO of Visa and BNY Mellon. | |
Emma N. Walmsley Board | Director | CEO and Director at GSK plc | Director since 2019. Leads GSK, focusing on innovation in healthcare and pharmaceuticals. | |
Hugh F. Johnston Board | Director | CFO at The Walt Disney Company; Director at HCA Healthcare, Inc. | Director since 2017. Chair of the Audit Committee. Former Vice Chairman and CFO at PepsiCo. | |
John W. Stanton Board | Director | Chairman of Trilogy Partnerships and First Avenue Entertainment (Seattle Mariners); Director at Costco Wholesale Corporation | Director since 2014. Telecommunications pioneer and investor. Chair of the Regulatory and Public Policy Committee. | |
Mark A. L. Mason Board | Director | CFO at Citigroup Inc. | Director since 2023. Extensive financial expertise from leadership roles at Citigroup. | |
Penny S. Pritzker Board | Director | Founder and Chairman of PSP Partners, LLC | Director since 2017. Chair of the Environmental, Social, and Public Policy Committee. Former U.S. Secretary of Commerce. | |
Reid G. Hoffman Board | Director | Board Member at Joby Aviation, Inc. and Aurora Innovation, Inc.; Partner at Greylock Partners | Director since 2017. Co-founder of LinkedIn. Focuses on entrepreneurship and technology investments. | |
Sandra E. Peterson Board | Lead Independent Director | Operating Partner at Clayton, Dubilier & Rice, LLC | Director since 2015. Chair of the Governance and Nominating Committee. Former Group Worldwide Chairman at Johnson & Johnson. | |
Teri L. List Board | Director | Board Member at Danaher Corporation, Visa Inc., and lululemon athletica inc. | Director since 2014. Former CFO at Kraft Foods and Gap Inc. Chair of the Compensation Committee. |
-
Given the significant capital expenditure growth required to meet AI infrastructure demand, can you elaborate on how you plan to balance these investments with expected revenue growth, and when we might see CapEx growth align more closely with cloud revenue growth?
-
With the rising costs of training large AI models and your substantial investments in OpenAI, how do you manage the financial impact of these investments on your margins, especially considering the $1.5 billion expected loss reflected in your other income and expense line?
-
Considering the external constraints like data center capacity and power availability that you've faced due to rapid AI demand growth, what steps are you taking to mitigate these challenges and ensure sustainable expansion without compromising on environmental commitments?
-
As you build out your AI business towards a $10 billion annual revenue run rate, can you provide more clarity on the monetization strategies for AI products like GitHub Copilot and M365 Copilot, and how they contribute to your top-line growth versus the costs involved in providing these services?
-
Given the reported growth in gaming and the record performance of titles like Call of Duty Black Ops 6, which was the biggest Call of Duty release ever, how do you plan to sustain this momentum in the gaming division, and what are the implications for your broader strategy, especially in integrating gaming with your AI and cloud services?
Research analysts who have asked questions during MICROSOFT earnings calls.
Brent Thill
Jefferies
6 questions for MSFT
Karl Keirstead
UBS
6 questions for MSFT
Keith Weiss
Morgan Stanley
6 questions for MSFT
Mark Moerdler
Bernstein Research
6 questions for MSFT
Raimo Lenschow
Barclays
4 questions for MSFT
Kash Rangan
Goldman Sachs
3 questions for MSFT
Michael Turrin
Wells Fargo
3 questions for MSFT
Kasthuri Rangan
Goldman Sachs
2 questions for MSFT
Mark Murphy
JPMorgan Chase & Co.
2 questions for MSFT
Aleksandr Zukin
Wolfe Research
1 question for MSFT
Bradley Sills
Bank of America
1 question for MSFT
Brad Reback
Stifel
1 question for MSFT
Brad Zelnick
Credit Suisse
1 question for MSFT
Brent Bracelin
Piper Sandler Companies
1 question for MSFT
Rishi Jaluria
RBC Capital Markets
1 question for MSFT
S. Kirk Materne
Evercore ISI
1 question for MSFT
Competitors mentioned in the company's latest 10K filing.
| Company | Description |
|---|---|
Distributes versions of its pre-installed application software, such as email and calendar products, through its PCs, tablets, and phones. It also competes in the devices market with high-quality industrial design and innovative technologies across various price points. Additionally, it operates a vertically integrated model combining hardware, software, and services. , , | |
Uses its position in enterprise communications equipment to grow its unified communications business. It also competes with Azure Security offerings in the cloud security and security information and event management solutions space. , | |
Provides a hosted messaging and productivity suite, competes with Azure in cloud services, and offers AI products. It also competes in the devices market and operates a competing platform for search and news advertising. , , | |
Offers communication tools to enable productivity and engagement within organizations and competes in the search and news advertising market. It also provides AI products and operates online gaming ecosystems. , , | |
Proofpoint | Provides security solutions across email security, information protection, and governance. |
Slack | Provides teamwork and collaboration software. |
Symantec | Provides security solutions across email security, information protection, and governance. |
Offers videoconferencing and cloud phone solutions. | |
Competes with Dynamics in cloud-based and on-premises business solutions, with Azure in cloud services, and with server products in enterprise-wide computing solutions. It also competes in database, business intelligence, and data warehousing solutions. , | |
Competes with Dynamics in cloud-based and on-premises business solutions. | |
Competes with Dynamics in cloud-based and on-premises business solutions and in database, business intelligence, and data warehousing solutions. , | |
Competes with Dynamics in cloud-based and on-premises business solutions. | |
Competes with Dynamics in cloud-based and on-premises business solutions. | |
Competes with Dynamics in cloud-based and on-premises business solutions. | |
Competes with Azure in cloud services and AI products. It also operates online gaming ecosystems. , | |
Competes with Azure in cloud services and with server products in enterprise-wide computing solutions. | |
Competes with Azure in cloud services, with server products in enterprise-wide computing solutions, and in database, business intelligence, and data warehousing solutions. | |
Anthropic | Competes with Azure's AI offerings. |
OpenAI | Competes with Azure's AI offerings and in the search and news advertising market. , |
Competes with Azure Security offerings in the cloud security and security information and event management solutions space. | |
Hewlett-Packard | Offers server hardware for the Linux operating system and competes with server products in enterprise-wide computing solutions. |
Competes in database, business intelligence, and data warehousing solutions. | |
Databricks | Competes in database, business intelligence, and data warehousing solutions. |
Tencent | Operates online gaming ecosystems. |
Nintendo | Competes with Xbox and cloud gaming services through its console platforms. |
Competes with Xbox and cloud gaming services through its console platforms. |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Activision Blizzard, Inc. | 2023 | Microsoft completed the all-cash acquisition on October 13, 2023, paying $95.00 per share for a total transaction value of $68.7 billion, which included the conversion of stock awards and the initiation of exchange offers for outstanding notes. The deal is strategically aligned with accelerating growth in gaming across mobile, PC, console, and cloud segments while integrating Activision Blizzard into its More Personal Computing segment. |
Nuance Communications, Inc. | 2022 | Microsoft completed the acquisition on March 4, 2022, in an all-cash deal valued at $18.8 billion, aimed at enhancing its industry-specific cloud and AI capabilities, particularly in healthcare and enterprise sectors. The transaction involved significant goodwill and identifiable intangibles, and it was a key strategic move to bolster Microsoft’s Intelligent Cloud segment while also redeeming nearly all convertible senior notes prior to September 30, 2022. |
Recent press releases and 8-K filings for MSFT.
- Microsoft CEO Satya Nadella pledged to rebuild employee trust after recent layoffs and a February return-to-office requirement of three days per week.
- Chief HR Officer Amy Coleman reported mixed reactions, with Seattle staff averaging 2.4 office visits per week under the new policy.
- Nadella emphasized in-person work as vital for mentoring interns and warned that some key business units may face profit declines, urging proactive renewal.
- Despite internal unrest, Microsoft’s stock is up ~20% YTD, market cap hit $3.7 trillion, net income rose 24%, and Azure revenue increased 39%.
- Microsoft articulated its AI vision as enabling “frontier firms” that are human-led but agent-operated, leveraging a multi-layered AI tech stack from hardware to Copilot orchestration.
- Microsoft 365 Copilot was updated with a GPT-5 backend the same day of GPT-5’s launch and is on track to become a default “Copilot + agents” platform with support for any model via Foundry.
- Adoption metrics show 70% of the Fortune 500 using Copilot extensively, record seat additions and expansions in the latest quarter, and Copilot as the fastest-growing M365 product with rising per-user usage intensity.
- Early customer deployments report 20–30% personal productivity gains and a 12% increase in customer service agent throughput, with ~50% of savings from upfront deflection in service workflows.
- Copilot, priced at $30/month, has maintained its price point amid discounts; with E5 penetration at 12% of 430 million seats (three years ago), Copilot and E5 remain key ARPU drivers.
- Frontier firm vision: Microsoft foresees a three-to-five-year evolution toward “human-led, agent-operated” organizations built on a five-layer AI stack (hardware, data with Fabric, models via Foundry, pro/low-code dev platforms, Copilot front-end) to orchestrate workflows.
- GPT-5 systems launch integrated into Copilot: GPT-5’s key innovation is a post-trained LLM router that dynamically orchestrates models and tools; Microsoft SIM-chipped GPT-5 into Copilot’s backend the same day and will make it the default in Microsoft 365 Copilot.
- Copilot as an agent platform: Positioning Copilot like the “iPhone for agents,” Microsoft enables enterprises to build domain-specific agents (e.g., clinical trial, financial analyst) via Copilot Studio and orchestrate them into end-to-end business processes.
- Rapid adoption and monetization: M365 Copilot exceeds 100 million MAUs with 70 percent of Fortune 500 using it; it is the fastest-growing M365 product and is priced at $30/user/month, driving upgrades synergistically with E5 (Purview data governance).
- Open ecosystem of models: While OpenAI remains Microsoft’s “first and best” partner, Foundry allows enterprises to deploy any LLM (e.g., Llama) in Copilot; Microsoft is also developing non-frontier MAI models under a commoditization thesis.
- Microsoft upgraded Copilot to GPT-5, replacing its backend and shifting the orchestration layer to an LLM-based router for dynamic agent routing; the new default integration will roll out in Microsoft 365 Copilot to power its “Copilot + agents” vision.
- Copilot adoption exceeds 100 million MAUs across commercial and consumer, with 70% of Fortune 500 deploying commercial Copilot; it’s the fastest-growing Microsoft 365 product, posting record seat additions and increasing per-user intensity.
- Copilot serves as the interface for a system of specialized domain agents—akin to iPhone-to-apps—supported by Microsoft’s Fabric data layer and Foundry model layer; vision targets a “frontier firm” that is human-led, agent-operated.
- Through Foundry, enterprises can choose any LLM (e.g., Llama, Mistral) in Copilot; Microsoft sees models commoditizing, positions its own Mistral AI as suited for non-frontier workloads, while frontier innovation continues via partners.
- Dow Jones Industrial Average fell 25 points, while the Nasdaq and S&P 500 gained 1% and 0.5%, respectively; the Russell 2000 declined 0.3%.
- Microsoft shares “just barely finished in the green” among mega-cap tech names, contributing to a modest gain in the Nasdaq 100.
- Salesforce reported Q2 adjusted EPS $2.91 (vs. $2.78 est.) and revenue $10.24 billion (vs. $10.14 billion est.), but its Q3 revenue guidance and margin outlook led shares to fall ~4% in after-hours trading.
- Microsoft Security, led by Corporate VP Basu Jakal, comprises six product families—including Defender & Sentinel for threat protection, Entra for identity protection/governance, Intune for device management, Purview for data security, and Security Copilot for generative AI defense—serving over 1.5 million customers globally.
- The company faces three key challenges: an unprecedented threat landscape (7,000 password attacks per second, 600 million daily; 1,500 tracked nation-state/financial actors vs. 300 last year); rising data/insider risks (20% of breaches from insiders; >80% of leaders concerned); and security complexity (40+ tools per org; 4.7 million unfilled security jobs; 250+ daily regulatory updates).
- Microsoft’s differentiation rests on its platform scale: processing 84 trillion security signals daily (10× growth in five years), housing the industry’s deepest threat intelligence (1,500 actors), offering an integrated portfolio across 50+ categories with best-of-breed solutions in 19, and embedding GenAI via Security Copilot (used by 1,000+ customers with 30% faster response).
- The Secure Future Initiative, launched in 2024 and reinforced in late 2023, mobilizes 34,000 engineers for 11 months under a Zero Trust framework (verify explicitly, least-privilege access, assume breach) with “secure by design, default, and operations” principles, driven as CEO Satya Nadella’s top priority via weekly and bi-weekly governance reviews.
- Morgan Stanley projects AI adoption could add up to $16 trillion in market value gains to the S&P 500 over several years.
- Full AI adoption may boost pre-tax income by over 50% in sectors like consumer services, capital goods, manufacturing and certain healthcare industries.
- Embodied AI in robotics could drive US factory labor costs down to around $5 per hour, with a 20% robot penetration potentially equalizing US and Chinese manufacturing costs.
- Agentic AI applications (e.g., software coding, legal document drafting) are expected to see earlier and broader adoption across services and logistics, while robotics deployment will be constrained by supply shortages.
- Microsoft’s latest AI diagnostic tool demonstrated higher accuracy than top human doctors at a lower cost, signaling near-term healthcare AI benefits.
- Rezolve Ai established its new Asia Pacific regional headquarters in Singapore with a multi-million-dollar investment from the Singapore Government.
- The company closed a $50 million equity round led by Citadel and grew to over $70 million in Annual Recurring Revenue in H1 2025.
- The Singapore hub enhances regional talent access and enterprise support for clients like Rakuten and Myntra, joining eight global innovation hubs worldwide.
- Lumpy backlog reflects timing of major deals; Microsoft-specific agreement closed in early Q3 and will boost next quarter backlog.
- Revenue growth is projected to re-accelerate in Q4 as Blackwell chips come online and contracted power capacity rises.
- Customer base is diversifying, with Google added as a new hyperscaler client and enterprise sign-ups reducing concentration risk.
- CoreWeave’s scale in operating large GPU AI training clusters positions it to capture a significant share of a potentially >$1 trillion AI market.
- Microsoft’s market capitalization reached $4 trillion on signs that its AI investments are beginning to pay off.
- Azure cloud computing sales are soaring due to strong demand for AI services.
- The company’s Copilot AI tools have attracted over 100 million users.
- OpenAI is considering a share sale that could value it at $500 billion, aiming to incentivize its workforce.