Microsoft stated that $7.6 billion of its net profit in the quarter came from OpenAI-related gains. Even excluding this OpenAI-driven boost, Microsoft's earnings performance still exceeded market expectations.OpenAI-related gains turned from negative to positive? Could this indirectly benefit big Oracle?$Microsoft(MSFT.US)$Oracle(ORCL.US)

Microsoft

Oracle

Microsoft FY25 Q4 Earnings

Microsoft's second-quarter performance overall exceeded market expectations, with strong growth in revenue, profit, and earnings per share. However, the company's capital expenditures surged 66% year-on-year, reaching a record high, coupled with a slowdown in cloud business growth compared to the previous quarter, raising investor concerns about the extended return cycle for AI investments. The stock price fell about 5% in after-hours trading

- Microsoft's Q2 report reveals record capital expenditures of $37.5 billion and concerns over slower growth in cloud sales, leading to a 5% drop in after-hours stock prices.  
- Revenues reached $81.27 billion, surpassing analyst estimates, with a net profit of $38.5 billion, boosted by profits related to OpenAI, which contributed $7.6 billion to net earnings.  
- Investors express anxiety over the heavy investments in AI infrastructure amid uncertain profitability, as nearly 45% of the company's cloud contract backlog stems from OpenAI, raising concerns about over-reliance on the partner.

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Microsoft's cloud business growth slows, record high capital expenditures raise concerns, stock price falls about 5% after hours | Earnings Report Insights

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