July 31, 2025 · 24-Hour AI Update
Over the past 24 hours, the AI sector has seen several major developments: Microsoft’s earnings beat expectations with Azure’s annual revenue surpassing $75 billion; ARM posted mixed results, with strong AI-driven demand but rising R&D costs weighing on profits; and Meta’s advertising business remains robust while the company accelerates acquisitions and talent recruitment in the AI space. Here’s today’s key AI earnings and corporate updates.
1. Microsoft’s earnings hit record highs: Azure annual revenue tops $75 billion
Microsoft’s latest earnings report shows:
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Earnings per share (EPS): $3.65, beating expectations of $3.37.
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Revenue: $76.44 billion, surpassing the forecast of $73.81 billion.
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Year-over-year growth: Revenue rose 18%, from $64.7 billion last year to $76.4 billion—Microsoft’s fastest growth rate in over three years.
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Net profit climbed from $22.04 billion last year to $27.23 billion.
Commentary: Azure has once again proven to be Microsoft’s growth engine. From being the king of the Windows era, to faltering in the mobile internet age, and now regaining its peak with Azure’s success.
Over the years, Microsoft has acquired GitHub, invested in OpenAI, bought Activision Blizzard, acquired speech recognition giant Nuance Communications, and integrated AI deeply into Microsoft 365—fully capitalizing on this wave of AI-driven transformation.
2. ARM’s earnings a mixed bag: AI demand drives revenue, but R&D costs hit profits
ARM’s latest report shows:
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License revenue: $468 million.
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Royalty revenue: $585 million.
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Year-over-year growth: 25%, driven by AI-powered demand across smartphones, data centers, automotive, and IoT markets.
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Neoverse chips are expected to reach nearly 50% market share in hyperscale data centers this year.
Commentary: ARM’s position in the AI era is commendable—its Neoverse chips are gaining traction and winning praise in the data center market.
However, heavy R&D spending has placed pressure on profits. ARM will need to strike a balance between maintaining technological leadership and ensuring financial health.
3. Meta: Strong ad business, but AI ambitions under pressure
Meta’s Q2 earnings show:
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Revenue: $47.52 billion, beating expectations of $44.83 billion.
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After-hours stock price jumped more than 11%.
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Advertising revenue grew 21.5%, exceeding expectations, driven by Advantage+ and Reels.
In AI, Meta’s LLaMA 4 model underperformed market expectations.
But Meta is stepping up its AI push: acquiring Scale AI, Animato.AI, and VALL-E Labs, aggressively hiring top AI talent, and even poaching Scale AI founder and CEO Alexandr Wang to lead its new “Super Intelligence” lab.
Commentary: Meta’s core ad business remains resilient, largely unaffected by tariffs or economic headwinds. While its large model efforts have lagged, its aggressive acquisitions and talent strategy are ambitious—will Meta carve out a major position in the AI race? This remains one of the biggest questions for the coming year.
4. Conclusion
Microsoft is riding the AI wave with Azure, ARM is leveraging its tech edge to dominate the AI chip ecosystem, and Meta is expanding its AI footprint while its ad revenues power ahead.
This wave of AI transformation is not just reshaping tech giants’ earnings—it’s rewriting the next decade of the global tech landscape.
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