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Microsoft reports strong fourth-quarter earnings amid uproar over DeepSeek’s AI

Microsoft beat Wall Street’s expectations as questions over multibillion-dollar spending on AI mount

Microsoft reported its second-quarter earnings for fiscal year 2025 on Wednesday, beating market expectations even as questions over multibillion-dollar spending on AI continue to mount, spurred by DeepSeek’s shock to the US stock market just days ago.

The tech giant reported earnings per share of $3.23, an increase of 10% on a year earlier, and revenue of $69.6bn, an increase of 12%. Wall Street had expected $3.11 a share from revenue of $68.9bn.

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