Big Tech earnings this week: What investors should expect

Transcript:

Caroline Woods: In terms of tech earnings, we have five of the big 7 on deck this week. What are you expecting to hear? Could that potentially derail this rally?

Jessica Inskip: If it's not all beaten raise it certainly could. It has the potential. It's all about how the market digests those type of earnings. What I think is important one we have very good earnings thus far. We are beating consistently. I think we're at 87% Last time I checked the mag five that are coming this week, I think it's different now that they're all around the same day, and a lot on a Fed bad day. Now the market's going to do a lot of comparing. That's going to be different from previous earnings cycles and that could change things. But ultimately it's is the demand still there for AI. Is there revenue that's being captured from those that we can actually see it. So to me the end game for AI is, of course targeted ads in a specific way. Google, for example, convinces us that Gmail and everything is free when in all reality, we get really good targeted ads, and artificial intelligence is a means to be more targeted. And I'm personally OK with that. Give me what I want, not what I don't, what I need, nonetheless. So I do think that compare and contrast is going to be different, but what's important is seeing the demand that's there for artificial intelligence to still be consistent. That's important.

This story was originally reported by TheStreet on Oct 28, 2025, where it first appeared in the Video section. Add TheStreet as a Preferred Source by clicking here.

Transcript:

Caroline Woods: In terms of tech earnings, we have five of the big 7 on deck this week. What are you expecting to hear? Could that potentially derail this rally?

This story was originally reported by TheStreet on Oct 28, 2025, where it first appeared in the Video section. Add TheStreet as a Preferred Source by clicking here.

During August, Microsoft introduced GPT-5's real-time router capability in Copilot, allowing the system to automatically select the optimal model for each prompt, enhancing response quality while optimizing costs. SharePoint agents became discoverable in the Teams app store in September, expanding the accessibility of AI-enhanced collaboration tools across the Microsoft 365 ecosystem. In July, Azure AI Foundry launched the Deep Research Agent in limited public preview, enabling developers to automate complex, multi-step web research using OpenAI's advanced agentic research model, tightly integrated with Bing Search for authoritative results.

The reimagined Microsoft Marketplace launched during September, introducing a new AI apps and agents category that extended Microsoft 365 Copilot and Azure AI Foundry while expanding discoverability across a unified Microsoft storefront. These product enhancements are likely to have contributed to improved adoption metrics and supported continued average revenue per user growth through the quarter, particularly as enterprises expanded their E5 suite deployments alongside Microsoft 365 Copilot implementation.

Management guided for Productivity and Business Processes revenues between $32.2 billion and $32.5 billion, representing growth of 14% to 15%, with Microsoft 365 Commercial cloud revenues expected to grow between 13% and 14% in constant currency. The segment benefited from relatively stable business trends compared to the prior quarter, with continued expansion in average revenue per user driven by E5 suite adoption and Microsoft 365 Copilot deployment gaining traction across enterprise customers. The convergence of robust Azure growth, accelerating Copilot adoption, massive infrastructure investments, and strategic product launches positioned Microsoft favorably heading into the fiscal first-quarter report, making the stock an attractive opportunity for investors seeking exposure to the AI revolution. MSFT currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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