Beautiful Virgin Islands

Friday, Dec 26, 2025

Microsoft beats expectations with first-quarter revenue

Microsoft beats expectations with first-quarter revenue

Outlook and Teams helped Microsoft weather the economic storm but cost-cutting by advertisers hit revenue at Google's parent company.

Microsoft has beaten economists' expectations, reporting first-quarter revenue of $50.12bn (£43.66bn).

The figure compares with $45.32bn a year earlier and analysts' forecasts of $49.61bn, according to Refinitiv IBES data.

Products such as Outlook and Teams have made the company essential to businesses continuing to use flexible work models, despite the broader hit to corporate spending.

Net income fell to $17.56bn, or $2.35 per share, during the quarter ending on 30 September, from $20.51bn, or $2.71
per share, a year earlier.

The news was more gloomy for Alphabet, which owns Google, however, as it missed estimates for quarterly revenue.

Alphabet was hit by a fall in income from advertisers who are cutting costs.

The company said total revenue was $69.09bn in the quarter to 30 September, compared with $65.12bn a year
earlier.

Analysts on average expected revenue of $70.58bn, according to Refinitiv data.

Net income fell to $13.91bn, or $1.06 per share, from $18.94bn, or $1.40 per share, a year earlier.

Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, said: "The slowdown in advertising revenue was not a surprise, but the speed of the slowdown was unwelcome, and the market is still highly sensitive to the changing tide.

"A weaker economic outlook will always put the brakes on a company's ability to pay for marketing. Plenty of tech companies rely on advertising revenue and the changing economic temperature saw Snap's shares enter a landslide earlier in the month.

"The reason Alphabet isn't following suit to the same degree is because it's utterly indispensable. Demand may ebb and flow, but it will never turn off completely, and that's reflected in a pretty remarkable share price performance over the last month.

"Google isn't a trend that might dissipate, it's a fundamental daily activity for swathes of the globe's population.

"Fundamentally the only true long-term risk to Alphabet's investment case is the heightened anti-trust landscape.

"Further political and legal scrutiny will happen. It's a case of when not if.

"Enormously deep pockets mean Alphabet can handle these blips on a financial front, but it becomes a bigger question if today's more ethically minded investors were to reach the end of their patience."

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Princesses Beatrice and Eugenie Join Royal Family at Sandringham Christmas Service
Fine Wine Investors Find Little Cheer in Third Year of Falls
UK Mortgage Rates Edge Lower as Bank of England Base Rate Cut Filters Through Lending Market
U.S. Supermarket Gives Customers Free Groceries for Christmas After Computer Glitch
Air India ‘Finds’ a Plane That Vanished 13 Years Ago
Caviar and Foie Gras? China Is Becoming a Luxury Food Powerhouse
Hong Kong Climbs to Second Globally in 2025 Tourism Rankings Behind Bangkok
From Sunniest Year on Record to Terror Plots and Sports Triumphs: The UK’s Defining Stories of 2025
Greta Thunberg Released on Bail After Arrest at London Pro-Palestinian Demonstration
Banksy Unveils New Winter Mural in London Amid Festive Season Excitement
UK Households Face Rising Financial Strain as Tax Increases Bite and Growth Loses Momentum
UK Government Approves Universal Studios Theme Park in Bedford Poised to Rival Disneyland Paris
UK Gambling Shares Slide as Traders Respond to Steep Tax Rises and Sector Uncertainty
Starmer and Trump Coordinate on Ukraine Peace Efforts in Latest Diplomatic Call
The Pilot Barricaded Himself in the Cockpit and Refused to Take Off: "We Are Not Leaving Until I Receive My Salary"
UK Fashion Label LK Bennett Pursues Accelerated Sale Amid Financial Struggles
U.S. Government Warns UK Over Free Speech in Pro-Life Campaigner Prosecution
Newly Released Files Shed Light on Jeffrey Epstein’s Extensive Links to the United Kingdom
Prince William and Prince George Volunteer Together at UK Homelessness Charity
UK Police Arrest Protesters Chanting ‘Globalise the Intifada’ as Authorities Recalibrate Free Speech Enforcement
Scambodia: The World Owes Thailand’s Military a Profound Debt of Gratitude
Women in Partial Nudity — and Bill Clinton in a Dress and Heels: The Images Revealed in the “Epstein Files”
US Envoy Witkoff to Convene Security Advisers from Ukraine, UK, France and Germany in Miami as Peace Efforts Intensify
UK Retailers Report Sharp Pre-Christmas Sales Decline and Weak Outlook, CBI Survey Shows
UK Government Rejects Use of Frozen Russian Assets to Fund Aid for Ukraine
UK Financial Conduct Authority Opens Formal Investigation into WH Smith After Accounting Errors
UK Issues Final Ultimatum to Roman Abramovich Over £2.5bn Chelsea Sale Funds for Ukraine
Rare Pink Fog Sweeps Across Parts of the UK as Met Office Warns of Poor Visibility
UK Police Pledge ‘More Assertive’ Enforcement to Tackle Antisemitism at Protests
UK Police Warn They Will Arrest Protesters Chanting ‘Globalise the Intifada’
Trump Files $10 Billion Defamation Lawsuit Against BBC as Broadcaster Pledges Legal Defence
UK Says U.S. Tech Deal Talks Still Active Despite Washington’s Suspension of Prosperity Pact
UK Mortgage Rules to Give Greater Flexibility to Borrowers With Irregular Incomes
UK Treasury Moves to Position Britain as Leading Global Hub for Crypto Firms
U.S. Freezes £31 Billion Tech Prosperity Deal With Britain Amid Trade Dispute
Prince Harry and Meghan’s Potential UK Return Gains New Momentum Amid Security Review and Royal Dialogue
Zelensky Opens High-Stakes Peace Talks in Berlin with Trump Envoy and European Leaders
Historical Reflections on Press Freedom Emerge Amid Debate Over Trump’s Media Policies
UK Boosts Protection for Jewish Communities After Sydney Hanukkah Attack
UK Government Declines to Comment After ICC Prosecutor Alleges Britain Threatened to Defund Court Over Israel Arrest Warrant
Apple Shutters All Retail Stores in the United Kingdom Under New National COVID-19 Lockdown
US–UK Technology Partnership Strains as Key Trade Disagreements Emerge
UK Police Confirm No Further Action Over Allegation That Andrew Asked Bodyguard to Investigate Virginia Giuffre
Giuffre Family Expresses Deep Disappointment as UK Police Decline New Inquiry Into Andrew Mountbatten-Windsor Claims
Transatlantic Trade Ambitions Hit a Snag as UK–US Deal Faces Emerging Challenges
Ex-ICC Prosecutor Alleges UK Threatened to Withdraw Funding Over Netanyahu Arrest Warrant Bid
UK Disciplinary Tribunal Clears Carter-Ruck Lawyer of Misconduct in OneCoin Case
‘Pink Ladies’ Emerge as Prominent Face of UK Anti-Immigration Protests
Nigel Farage Says Reform UK Has Become Britain’s Largest Party as Labour Membership Falls Sharply
Google DeepMind and UK Government Launch First Automated AI Lab to Accelerate Scientific Discovery
×