Microsoft (MSFT, Financial) has officially announced that it will terminate support for its Windows 10 operating system by October 14, 2025. The company strongly advises users to transition to Windows 11 as soon as possible due to security concerns. After this date, Windows 10 will no longer receive security updates, posing risks from evolving cybersecurity threats.
Microsoft suggests that users first check if their current Windows 10 PCs can upgrade to Windows 11, or consider purchasing new, more secure PCs. According to reports, the majority of PCs sold in the past five years have the TPM 2.0 chip required for Windows 11, but around 20% of Windows installations, or approximately 240 million computers, do not have this chip and cannot upgrade.
Many of these PCs can be recycled, but their inability to run the latest Windows version significantly reduces their refurbishment and resale value. Analysts suggest that Microsoft's move to discontinue Windows 10 could be a strategy to boost Windows 11 market penetration, given its higher hardware requirements.
In recent financial news, Microsoft reported a strong first fiscal quarter for 2025, ending September 30, 2024, with revenue of $65.685 billion, up 16% year-over-year. Net profit rose to $24.667 billion, marking an 11% increase, with diluted earnings per share up 10% to $3.30. The growth was fueled by substantial contributions from cloud computing and Office software, with Azure cloud revenue rising by 33%.
Microsoft's CEO, Satya Nadella, emphasized the company's focus on accelerating AI application development, which is boosting demand for Azure services. Despite exceeding revenue expectations, analysts noted concerns over Microsoft's AI investments and competitive pressures. The company's revenue guidance for the second quarter of the 2025 fiscal year fell short of analyst expectations, with projections between $68.1 billion and $69.1 billion, while analyst forecasts were $69.83 billion.
Additionally, OpenAI's recent launch of ChatGPT search introduces new competition for Microsoft Bing. Although Microsoft has significantly invested in OpenAI, ChatGPT's capabilities present a direct challenge to Microsoft's own Copilot and Bing search tools.
