Fourth Quarter and Full-Year 2025 Results Christian Klein, CEO Dominik Asam, CFO January 29, 2026 Public Fourth Quarter and Full-Year 2025 Results Presentation | January 29, 2026 Safe Harbor Statement During this presentation we will make forward-looking statements which are predictions, projections, or other statements about future events. These statements are based on current expectations, forecasts, and assumptions that are subject to risks and uncertainties that could cause actual results and outcomes t ...

Core Insights - SAP SE reported strong financial results for Q4 and FY2025, highlighting significant growth in cloud services and overall revenue [1][5][17] Financial Performance - Q4 2025 total revenue increased by 3% to €9.68 billion, with a 9% increase at constant currencies [4][11] - Full year 2025 total revenue rose by 8% to €36.80 billion, with an 11% increase at constant currencies [7][17] - Cloud revenue for Q4 grew by 19% to €5.61 billion, and for the full year, it increased by 23% to €21.02 billion [11][17] - The Cloud ERP Suite revenue in Q4 was up 23% to €4.86 billion, and for the full year, it rose by 28% to €18.12 billion [11][17] - Operating profit for Q4 increased by 27% to €2.55 billion, while for the full year, it surged by 111% to €9.83 billion [13][18] - Free cash flow for Q4 was €1.03 billion, a significant recovery from a loss in the previous year, and for the full year, it increased by 95% to €8.24 billion [15][20] Cloud Backlog and Growth - Total cloud backlog reached €77.29 billion, up 22% year-over-year, and 30% at constant currencies [5][32] - Current cloud backlog grew by 16% to €21.05 billion in Q4, with a 25% increase at constant currencies [10][32] Shareholder Returns - SAP announced a new share repurchase program of up to €10 billion, set to begin in February 2026 [23][24] Customer Engagement and Market Position - SAP's "RISE with SAP" initiative continues to attract global customers, driving significant business transformations [25][26] - The company reported strong cloud revenue performance across various regions, particularly in APJ and EMEA [28][29] Non-Financial Performance - Customer NPS decreased by 3 points to 9, primarily due to lower scores from on-premise customers [21] - Employee Engagement Index increased to 76%, and total carbon emissions decreased to 6.3 Mt [22]

Group 1 - The core viewpoint of the news highlights the significant growth in AI computing power and applications, leading to a bullish market trend, particularly in cloud computing ETFs and key stocks like iFlytek [1][3] - iFlytek announced an expected net profit of 785 million to 950 million yuan for 2025, representing a year-on-year growth of 40% to 70%, driven by the accelerated deployment of AI applications [3] - The fourth quarter net profit for iFlytek is projected to reach 852 million to 1.017 billion yuan, indicating a staggering quarter-on-quarter increase of 394% to 490% [3] Group 2 - Meta's recent earnings report also exceeded market expectations, with significant revenue growth and a capital expenditure forecast of up to 135 billion yuan for 2026, nearly double that of the previous year [3] - The computing power industry is experiencing inflation from 2025 to early 2026, affecting storage, CPUs, and other semiconductor chips, driven by increased demand for AI training [3] - Alibaba is preparing to advance the independent listing of its AI chip subsidiary, Tianshu, which is expected to boost the development of domestic computing power chips [4] Group 3 - The open-source AI assistant Clawdbot has gained market attention, transforming personal AI assistants into proactive digital partners, indicating a shift in value from models to application frameworks [5] - The cloud computing ETF tracks a comprehensive index covering leading software developers and electronic component companies, providing a one-stop solution for the AI computing era [5]

Core Insights - Meta Platforms Inc. received a positive investor response after announcing higher-than-expected capital expenditures for its AI business, with full-year capital expenditures projected between $115 billion and $135 billion, surpassing the average analyst estimate of $110.6 billion, leading to a 7% increase in shares during extended trading [1][12] Capital Expenditures - For the fiscal second quarter, capital expenditures reached $37.5 billion, marking a 66% increase from the previous year and exceeding analyst estimates of $36.2 billion [2] Azure Growth - Microsoft's Azure cloud-computing unit reported a 38% revenue increase during the quarter when adjusted for currency fluctuations, aligning with analysts' projections, although the growth rate slowed by one percentage point from the previous quarter [3] - Microsoft anticipates Azure sales to grow by 37% to 38% in the current quarter [3] Investor Concerns - Analysts expressed concerns regarding the rapid growth of capital expenditures outpacing expectations, alongside a potential slowdown in Azure's growth, raising questions about the return on investment [4] Cloud Expansion - Microsoft has seen significant growth in its cloud computing sector, aided by a partnership with OpenAI, but has faced challenges in scaling data center capacity to meet demand [6] AI Integration - Microsoft is actively integrating AI tools, including those from OpenAI, into its products, aiming to enhance sales of productivity software and cloud services [7] Earnings Performance - Microsoft reported a 17% increase in total sales to $81.3 billion for the quarter, with earnings per share at $5.16, boosted by gains from its investment in OpenAI [9] - Analysts had projected sales of $80.3 billion and earnings per share of $3.92, with customer commitments expected to materialize as sales more than doubling from the previous year, largely due to a $250 billion deal with OpenAI [10] Market Position - Microsoft is the first among the Big Three cloud service providers to report quarterly financial results this year, with Alphabet Inc. and Amazon.com Inc. scheduled to report subsequently [11]

At the silicon layer, Nadella pointed to a mix of NVIDIA and AMD GPUs and Microsoft’s own chips. He said Microsoft brought online its Maia 200 accelerator, describing it as delivering “10+ petaflops at FP4 precision” with “over 30% improved TCO compared to the latest generation hardware” in Microsoft’s fleet. He also highlighted the Cobalt 200 CPU, which he said delivers “over 50% higher performance” compared with Microsoft’s first custom processor for cloud-native workloads.On infrastructure, Nadella empha ...

Financial Data and Key Metrics Changes - Revenue for the quarter was $81.3 billion, up 17% year-over-year and 15% in constant currency [25] - Gross margin dollars increased by 16% and operating income rose by 21% [25] - Earnings per share was $4.14, reflecting a 24% increase year-over-year [25] - Company gross margin percentage was 68%, slightly down year-over-year due to investments in AI infrastructure [26] - Operating expenses increased by 5%, driven by R&D investments [26] Business Line Data and Key Metrics Changes - Microsoft Cloud revenue reached $51.5 billion, growing 26% year-over-year [31] - Productivity and Business Processes revenue was $34.1 billion, up 16% year-over-year [31] - M365 Commercial Cloud revenue increased by 17%, with paid M365 commercial seats growing 6% to over 450 million [32] - Intelligent Cloud segment revenue was $32.9 billion, growing 29% year-over-year [33] - More Personal Computing revenue declined by 3% to $14.3 billion [36] Market Data and Key Metrics Changes - Commercial bookings increased by 230%, driven by large Azure commitments from OpenAI [30] - Commercial remaining performance obligation (RPO) increased to $625 billion, up 110% year-over-year [30] - Azure revenue grew by 39%, slightly ahead of expectations [34] - LinkedIn revenue increased by 11%, driven by marketing solutions [24] Company Strategy and Development Direction - The company is focusing on AI diffusion and its impact on GDP, with significant investments in AI infrastructure [6] - Microsoft aims to build a comprehensive AI business that integrates across its platforms, enhancing customer experiences [10] - The strategy includes expanding sovereignty solutions to meet local data residency needs [9] - The company is investing in both first-party and third-party AI models to enhance its offerings [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of AI and its integration into various business lines, emphasizing the importance of infrastructure investments [6][9] - The company anticipates continued strong demand across its cloud services, with a focus on balancing supply and demand [34] - Management highlighted the importance of long-term investments in R&D and product innovation to drive future growth [50] Other Important Information - Capital expenditures for the quarter were $37.5 billion, with a significant portion allocated to short-lived assets like GPUs and CPUs [27] - The company returned $12.7 billion to shareholders through dividends and share repurchases, a 32% increase year-over-year [29] - The company is seeing strong momentum in its Copilot offerings, with significant increases in daily active users and paid seats [18] Q&A Session Summary Question: Concerns about CapEx growth and Azure revenue - Management acknowledged the correlation between CapEx and Azure revenue, emphasizing long-term investments in infrastructure to meet demand [48][50] Question: Line of sight from hardware CapEx to revenue and margins - Management clarified that much of the capital spent is already contracted for the useful life of the hardware, reducing risk [60][61] Question: Durability of OpenAI-related backlog - Management expressed confidence in the breadth and diversification of their RPO, highlighting strong growth across various customer segments [68] Question: Capacity additions and their impact - Management confirmed ongoing efforts to add capacity globally, emphasizing the need for efficient operations across multiple locations [75] Question: Performance of Maia 200 accelerator - Management highlighted the significance of silicon innovation and its role in enhancing performance and cost efficiency for AI workloads [80]

格隆汇1月29日｜微软(MSFT.US)的股价盘后一度下跌8%，尽管这家科技巨头公布了超出预期的第二财 季业绩。微软公布的调整后每股收益为4.14美元，营收为813亿美元。FactSet调查的分析师此前预计每 股收益为3.91美元，营收为803亿美元。投资者可能是在对该公司在Azure云服务方面的业绩做出反应。 该季度Azure的营收增长了39%。这一数据超过了华尔街预期的37.8%，但较第一财季40%的增速略有下 降。 ...

| Microsoft Second Quarter Fiscal Year 2026 Results Microsoft 2 Financial Summary and Highlights Commercial Highlights Agenda Segment Overview and Highlights Appendix All growth comparisons in this presentation relate to the corresponding period of last fiscal year unless otherwise noted. Numbers may not foot due to rounding FY26 Q2 Financial Summary | | | GAAP and CC results | | | Non-GAAP and CC results | | | --- | --- | --- | --- | --- | --- | --- | | ($ in billions, except per share amounts) | FY26 Q2 | ...

Core Viewpoint - Microsoft reported strong second-quarter earnings, exceeding Wall Street expectations, but its stock fell over 3% due to concerns about rising costs associated with AI investments [1][2][14]. Financial Performance - Microsoft posted earnings per share of $5.16 on revenue of $81.27 billion, surpassing analyst estimates of $3.92 in EPS and $80.3 billion in revenue [3][15]. - Cloud revenue reached $51.5 billion, marking a significant increase from $40.9 billion a year earlier [3][15]. Segment Performance - The Intelligent Cloud segment, including Azure, generated $32.9 billion in revenue, exceeding expectations of $32.2 billion [7][16]. - Productivity and Business Processes revenue, which includes Microsoft 365, came in at $34.1 billion, also above Wall Street estimates [7][16]. - The More Personal Computing segment, which includes Windows, Surface, and Xbox, generated $14.3 billion in revenue, matching expectations [8][16]. AI Business Insights - CEO Satya Nadella highlighted the growth of Microsoft's AI business, stating it is larger than some of the company's biggest franchises [4][16]. - The company's remaining performance obligations, a key indicator of future revenue, rose to $625 billion, with approximately 45% linked to OpenAI commitments [10][16]. Future Outlook - Microsoft faces AI capacity constraints, with demand for AI services exceeding supply, which is limiting near-term revenue [11][16]. - CFO Amy Hood indicated that capital expenditures are expected to increase in fiscal 2026 beyond last year's $88.2 billion [12][16]. - Despite being a major beneficiary of the AI surge, Microsoft’s stock has pulled back as investors assess the scale of AI-related spending [13][16].

Microsoft just did the thing Big Tech keeps promising it can do: spend like the future has a delivery deadline and still put up clean numbers. The company keeps proving that demand for cloud and AI services is real, broad, and growing at scale. But investors are worried about how expensive it is to keep that engine running — and how quickly the payoff will show up where it counts. In its latest quarter, Microsoft posted $81.3 billion in revenue (up 17%) and $4.14 in non-GAAP EPS (up 24%); analysts were l ...