Tech giants Meta and Microsoft report strong earnings
NEW YORK
Technology giants Microsoft and Meta have reported better-than-expected results for the first quarter of 2025.
Microsoft said its revenue rose 13 percent to $70.1 billion, powered by a strong performance in its cloud computing and artificial intelligence businesses, solidly beating analyst expectations,
The company saw net profits climb 18 percent to $25.8 billion, compared to the same period last year.
Crucially, Microsoft Cloud revenue reached $42.4 billion, growing 20 percent year-over-year.
Microsoft was one of the first tech giants to double down on artificial intelligence when the launch of ChatGPT in 2022 rocked the tech industry.
Like its rivals, it has spent massively on building the infrastructure necessary to power the AI revolution, with analysts keeping a close eye on the return on investment.
The company in January said it was on track to pump about $80 billion into capital and infrastructure this fiscal year.
Meanwhile, Meta reported quarterly profits that were well above expectations, brushing aside market worries that its heavy investments in cloud computing and artificial intelligence would hamper growth.
The company reported a $16.6 billion profit in the first three months of the year on revenue of $42.3 billion.
Meta this week unveiled its first standalone AI assistant app, challenging ChatGPT by giving users a direct path to its generative AI models.
Meta has laid out plans for massive infrastructure investments, with expected capital expenditures of $64-72 billion for 2025, primarily supporting AI initiatives.
