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 .
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| 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. |
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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?
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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?
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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?
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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?
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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
8 questions for MSFT
Karl Keirstead
UBS
8 questions for MSFT
Keith Weiss
Morgan Stanley
8 questions for MSFT
Mark Moerdler
Bernstein Research
8 questions for MSFT
Kash Rangan
Goldman Sachs
5 questions for MSFT
Mark Murphy
JPMorgan Chase & Co.
4 questions for MSFT
Raimo Lenschow
Barclays
4 questions for MSFT
Brad Zelnick
Credit Suisse
3 questions for MSFT
Michael Turrin
Wells Fargo
3 questions for MSFT
Kasthuri Rangan
Goldman Sachs
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
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.
- d-Matrix, a Santa Clara–based AI chip startup backed by Microsoft, raised $275 million in a Series C round at a $2 billion valuation.
- The funding was co-led by Bullhound Capital, Triatomic Capital, and Temasek, with participation from Qatar Investment Authority, Singapore’s EDBI, M12, and other existing investors.
- Its full-stack inference platform offers 10× faster performance, 3× lower cost, and up to 5× greater energy efficiency compared to GPU systems, targeting large AI model deployment.
- Proceeds will support global expansion, production scaling, distribution, and enhanced customer support as AI inference becomes critical infrastructure.
- Microsoft commits $10 billion to build one of Europe’s largest AI and cloud data centers in Sines, Portugal, boosting regional digital transformation and AI infrastructure.
- The facility, in partnership with Start Campus and British startup Nscale, will house 12,600 next-gen GPUs, quantum-ready architecture, and green energy systems to support Microsoft’s carbon-negative goals by 2030.
- Construction will begin in early 2026 with operations slated for 2028, creating thousands of jobs and cementing Portugal as a key tech innovation hub.
- The project reflects Microsoft’s push for AI self-sufficiency, including proprietary chip development and expanded partnerships with neocloud providers to meet surging AI demand.
- Microsoft will integrate Azure AI infrastructure and agentic AI into Inbrain’s graphene-based BCI platform to enable real-time, adaptive treatments for neurological disorders including Parkinson’s disease and epilepsy.
- Inbrain’s ultraflexible graphene implant, just 10 µm thick, has received FDA breakthrough device designation for Parkinson’s therapy and showed no device-related adverse events in four initial human trial participants.
- The collaboration leverages Microsoft’s cloud AI, including large language models and data analytics, to power closed-loop precision interventions that autonomously modulate neural circuits, with a strong emphasis on ethical AI and data privacy.
- Inbrain recently raised $50 million in a Series B round and plans U.S. expansion through partnerships such as with the Mayo Clinic.
- Microsoft launched the MAI Superintelligence Team led by DeepMind co‐founder Mustafa Suleyman to develop humanist superintelligence, focusing on controllable, specialist AI that serves human interests.
- The team aims for domain‐specific superhuman capabilities in medical diagnostics within the next two to three years and will expand into molecular design, energy storage, education, and AI companions.
- Microsoft emphasizes safety and human control, positioning MAI’s approach in contrast to open‐ended AGI efforts tied to partners like OpenAI, with a signal of substantial financial investment.
- MAI will be supported by chief scientist Karén Simonyan and leverage Microsoft’s AI products and cloud platform, including Bing and Copilot.
- Florida Crystals Corporation expands its agreement with Celonis as its enterprise platform for AI, automation, and digital transformation, unlocking millions in working capital across Finance, Procurement, and Supply Chain operations.
- The Celonis Process Intelligence Platform now surfaces insights within Microsoft Teams and deploys AI solutions via Microsoft Copilot, enabling real-time intelligence and faster issue resolution.
- As part of the deal, Celonis and FCC are co-creating an Asset Reliability application to improve Overall Equipment Effectiveness, asset utilization, and availability, and power FCC’s AI Lighthouse Program with pilots in invoice processing, predictive maintenance, and automated order management.
- Microsoft obtained U.S. export licenses to ship advanced Nvidia GPUs (GB300/Grace Blackwell-class), equivalent to over 60,400 A100-class chips, to the UAE under the Trump administration.
- The company will invest more than $15.2 billion in the UAE through 2029, including over $10 billion in capital expenditures, billions in operating costs, and a $1.5 billion equity stake in sovereign AI firm G42.
- As part of its expansion, Microsoft plans to train 1 million people in technical skills and has launched a Global Engineering Development Center and an AI for Good Lab in Abu Dhabi.
- Related commercial agreements include a roughly $9.7 billion deal with IREN to provide access to Nvidia’s advanced chips.
- Microsoft agreed to a $9.7 billion, five-year contract to lease Nvidia GB300 AI processors from IREN, marking one of its largest infrastructure investments.
- IREN anticipates $1.9 billion in annualized revenue from the deal, including a 20% upfront prepayment by Microsoft.
- The Nvidia GPUs will be deployed in phases over the next year at IREN’s Texas campus to support approximately 200 megawatts of critical computing power.
- Following the announcement, IREN’s shares jumped over 30%, extending a 500% rally this year as investors bet on AI hardware demand.
- Annual revenue of OpenAI significantly surpasses the widely reported $13 billion, with projections to reach $100 billion by 2027.
- Despite $1.4 trillion in AI infrastructure investments and recent net losses including an implied $12 billion loss, CEO Sam Altman remains confident in steep revenue growth.
- OpenAI has restructured into nonprofit and for-profit entities in preparation for a potential IPO valued up to $1 trillion, underscoring its market leadership.
- Microsoft holds a 27% stake in OpenAI following a $13 billion investment, which could appreciate to roughly $270 billion as valuation increases.
- Q1 revenue of $77.7 billion (+18%/+17% cc), operating income up 24%/+22% cc, and EPS of $4.13 (+23%/+21% cc)
- Microsoft Cloud revenue of $49.1 billion (+26%/+25% cc) with a 68% gross margin, and Azure & other cloud services up 40%/+39% cc
- OpenAI partnership extended with an incremental $250 billion of Azure commitments and RPO rising 51% to $392 billion
- Capital expenditures of $34.9 billion, ~50% on GPUs/CPUs amid capacity constraints; AI capacity to grow >80% this year and data-center footprint to double over two years
- Q2 guidance: revenue of $79.5–80.6 billion (14–16% growth); Microsoft Cloud gross margin expected at ~66%, with capacity constraints persisting through year-end
- Reported Q1 fiscal 2026 revenue of $77.7 billion (up 18% YoY) and EPS of $4.13 (up 23%); free cash flow increased to $25.7 billion.
- Microsoft Cloud revenue was $49.1 billion (up 26% YoY); commercial remaining performance obligation reached $392 billion (up 51%), with Azure revenue growing 40%.
- Expanded partnership with OpenAI includes $250 billion of incremental Azure commitments and extends exclusive service IP rights through 2030 (model IP through 2032).
- FY Q2 guidance calls for revenue of $79.5–$80.6 billion (growth 14–16%) and Azure growth of ~37%, while capacity constraints are expected to persist through year-end.