Having suffered this week from ChatCCP's arrival on the scene, traders are hoping that MSFT's earnings (and CapEx outlook) will rescue sentiment. If ASML's data is anything to go by, thing should be positive.

Out of the gate, MSFT beat expectations top- and bottom-line...

• *MICROSOFT 2Q REV. $69.63B, EST. $68.92B

• *MICROSOFT 2Q EPS $3.23, EST. $3.10

But, below the surface things were more problematic as Cloud Revenue disappointed:

• *MICROSOFT 2Q CLOUD REV. $40.9B, EST. $41.1B

• *MICROSOFT 2Q INTELLIGENT CLOUD REV. $25.54B, EST. $25.89B

Azure revenue growth slowed to 31.0% (below the 31.8% expected) and the slowest in a year...

“This quarter Microsoft Cloud revenue was $40.9 billion, up 21% year-over-year,” said Amy Hood, executive vice president and chief financial officer of Microsoft.

”We remain committed to balancing operational discipline with continued investments in our cloud and AI infrastructure.”

The reaction was not good with MSFT down over 5% in the after hours (having rallied up to erase the losses from DeepSeek Day beforehand)...

“We are innovating across our tech stack and helping customers unlock the full ROI of AI to capture the massive opportunity ahead," said Satya Nadella, chairman and chief executive officer of Microsoft.

“Already, our AI business has surpassed an annual revenue run rate of $13 billion, up 175% year-over-year.”

We look forward to hearing the questiohns about DeepSeek during the earnings call.