London Daily

Focus on the big picture.
Sunday, Aug 02, 2026

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

0:00
0:00
Close
Finland Deploys Commercial-Scale Thermal Batteries Using Crushed Rock to Store Renewable Grid Energy
Valued at $109 Million: F-35B Fighter Jet Crashes in Southern California
Sainsbury Agrees to Sell Argos in £120 Million Deal to Private Consortium
High Court Clears Way for Construction of Chinese Embassy at Royal Mint Court
UK Fuel Prices Climb to Multi-Month Highs as Strait of Hormuz Tensions Disrupt Oil Supplies
Severe Summer Drought and Record Heat Put UK Harvests at Risk
Prime Minister Andy Burnham Faces Labour Backbench Opposition Over Potential Support for New North Sea Oil and Gas Drilling
Bank of England Warns Inflation Will Stay Above 3% as Middle East Energy Shock Prolongs Cost-of-Living Pressures
Andy Burnham has Announces Plans to Redistribute Income Tax Revenue to English Mayors
Early-Release Scheme Faces Fresh Scrutiny as Reoffending and Prison Recalls Rise
Police Phone Checks Followed Report on Murder of MI5 Agent Inside Sinn Féin
Archbishop of Canterbury Reaffirms £100 Million Reparative Justice Fund During Ghana Visit
Charities Allege French Police Used Tear Gas Against Channel Migrants
Norwegian Teenager Convicted Over Iran-Linked Murder Plot in Britain
Christian Organisations File Charity Complaints Against Amnesty International UK
Ofgem Tightens Grid Connection Rules for New Data Centres
FTSE 100 Reaches Record High Despite Global Technology Sell-Off
Millions of UK Households Urged to Check Eligibility for Winter Energy Discount
Labour Restores Parliamentary Whips to Diane Abbott and Joani Reid
UK Supreme Court to Hear Challenge Over Palestine Action Ban
UK Commits More Than £8.4 Billion to Dreadnought Nuclear Submarine Programme
England Declares Severe Drought as Wildfire Burns Near Sizewell Nuclear Site
Bank of England Holds Interest Rates at 3.75% as Middle East Tensions Fuel Inflation Risks
Drought Status Extended Across All of Wales as Heat and Dry Weather Deepen Environmental Strain
Record-Low Danube Exposes Probable Mammoth Remains in Bulgaria
UK Business Confidence Climbs to Four-Month High
Greater Manchester Gains Expanded Powers Under Regional Funding Reforms
UK Supreme Court to Hear Appeal Over Palestine Action Terror Ban
Shell's Quarterly Profit Doubles to Nearly $10 Billion on Higher Energy Prices
UK Government Removes VAT From Household Electricity Bills
Exceptional Drought Grips Half of England as Wildfire Threatens Sizewell
Bank of England Holds Interest Rates at 3.75% as Inflation Risks Persist
US Says It Has Carried Out Heavy Strikes on Iran After Attempted Attacks on Its Forces
The chief executive of the popular gaming company laid off many employees and his pay rose to 38 million dollars
UK Employment Holds Steady as Wage Growth Remains Moderate
England to Introduce Artificial Intelligence into Secondary School Curriculum
Wales Launches £1.2 Billion Industrial Regeneration Programme
High Court Upholds UK Digital Surveillance Framework
Northern Ireland Reaches Budget Agreement on Infrastructure and Public Sector Pay
Home Office Expands Digital Border Checks Nationwide
UK Approves Major North Sea Wind and Carbon Capture Project
The World's Most Terrifying Smartphone: Recording, Documenting, and Reporting to the Regime
Scotland Approves Major Renewable Energy Expansion
UK and United States Sign AI and Semiconductor Cooperation Pact
UK Treasury Tightens Fiscal Controls After Gilt Market Volatility
Bank of England Holds Interest Rates at 4.5%
UK Unveils £10 Billion NHS Funding Overhaul and Workforce Reform
The AI User Nightmare: Private Claude Conversations Leaked to the Internet
UK: Former Football Association Leaders Call for World Cup Boycott Over FIFA Privatization Plan
Forbidden Love: China severs millions from their virtual partners
×