Microsoft (MSFT) to End Windows 10 Support, Reports Strong Q1 Earnings

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Nov 03, 2024
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Microsoft (MSFT, Financial) has officially announced that support for Windows 10 will end on October 14, 2025. Users are strongly encouraged to upgrade to Windows 11, as Windows 10 will no longer receive security updates, exposing users to potential threats. Windows 11 is touted as a modern, secure, and efficient operating system that significantly enhances productivity and user satisfaction across work, learning, and entertainment.

Users are advised to check if their current Windows 10 PCs can upgrade to Windows 11 or consider purchasing a new PC. Windows 11 requires computers to have a TPM 2.0 chip, which is present in most PCs sold in the past five years. However, approximately 20% or 240 million Windows installations lack this chip, making them incompatible with Windows 11.

After the close of the U.S. stock markets on October 30, Microsoft, a leading tech giant, released its financial results for the first quarter of the 2025 fiscal year. Microsoft reported quarterly revenue of $65.6 billion, a 16% increase year-over-year, surpassing the market's expectation of $64.51 billion. Net income reached $24.7 billion, up 11%, with earnings per share at $3.30, exceeding forecasts of $3.10.

Satya Nadella, Microsoft’s Chairman and CEO, emphasized the company's focus on expanding opportunities and acquiring new customers by leveraging its AI platforms and tools. Amy Hood, Microsoft's Executive Vice President and CFO, noted the robust performance of the sales team and partners, highlighting a strong start to the fiscal year. Microsoft's cloud segment reported revenues of $38.9 billion, exceeding analyst expectations, with Azure and other cloud services revenues increasing by 33%.

Despite the strong financial results, Microsoft's stock experienced a slight reversal. This reaction was partly due to the company's guidance for the second quarter of the 2025 fiscal year, with projected revenues between $68.1 billion and $69.1 billion, slightly below analyst estimates of $69.83 billion. Additionally, OpenAI, a Microsoft-backed company, announced the launch of ChatGPT search, intensifying competition in the search engine market, directly challenging Microsoft’s Bing and AI endeavors.

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I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.