Microsoft’s strong quarterly earnings show no sign of AI disillusionment—or a Trump tariff hit

Microsoft reported strong quarterly results, with revenue rising 13% to US$70.1 billion, powered by a strong performance in its cloud computing and artificial intelligence businesses.

The results, which solidly beat analyst expectations, drove Microsoft’s share price more than 8% higher in after-hours trading.

The company also allayed worries that it would suffer due to the high tariff policies of U.S. President Donald Trump’s administration, offering a good outlook for the ongoing quarter.

Microsoft CEO Satya Nadella is doubling down on the US$2.9 trillion software giant’s customer-first strategy amid economic challenges like inflation and growth.

Nadella said the company will focus on customers first, which will ultimately fuel Microsoft’s rise.

Reference Sources

1. malaymail - Microsoft rakes in US$70.1b on cloud, AI boom; shares surge after strong quarter
2. fortune - Microsoft CEO Satya Nadella says software is the ‘most malleable resource’ to combat ‘any type of inflationary pressure’
3. fortune - Microsoft’s strong quarterly earnings show no sign of AI disillusionment—or a Trump tariff hit
4. theguardian - Microsoft beats Wall Street expectations for fourth quarter in a row amid AI boom
5. cnbc - Microsoft quiets critics, delivers the kind of quarter worthy of its post-earnings stock pop

Airbus chief warns there will be ‘only losers’ from prolonged trade war

(Source: Shutterstock)

Airbus CEO Guillaume Faury has warned that there will be “only losers” in the aerospace industry from a prolonged trade war, particularly in the U.S., as he called for a return of tariff-free trading for the industry.

Faury said the industry in the U.S. was trying to “make the case” for bringing back a 1979 agreement that until the recent trade disruption allowed for tariff-free trading of aircraft and parts.

He added that it appeared “that there will be only losers in the aerospace industry, in particular in the U.S.”

His comments came as Airbus posted better-than-expected earnings and revenues for the first quarter and reaffirmed targets for the year, while also stressing it was too early to quantify the impact of a tariff war in which there would be “only losers.” The world’s largest plane maker said widely watched adjusted operating income rose 8% to 624 million Euros (US$707 million) and revenues gained 6% to 13.54 billion Euros in the quarter, led by defense which smoothed the impact of lower jetliner deliveries.

Analysts had on average expected adjusted or underlying operating profit of 602 million Euros on revenues of 12.95 billion, according to consensus data compiled by the company.

Airbus also burned significantly less cash than expected.

Reference Sources

1. ft - Airbus chief warns there will be ‘only losers’ from prolonged trade war
2. cnbc - Airbus beats first-quarter forecasts, maintains targets
3. bussinesstimes - Airbus tells US airlines they’ll need to pay their own tariffs - The Business Times
4. fortune - Airbus reports jump in Q1 profits and sticks to full-year forecasts despite Trump’s tariff onslaught

U.S. says Ukraine minerals deal could impact talks with Russia

(Source: Reuters)

After months of negotiations, the U.S. and Ukraine have signed a deal that is expected to give Washington access to Ukraine's critical minerals and other natural resources, an agreement Kyiv hopes will secure long-term support for its defense against Russia.

The agreement, which the Ukrainian Parliament must ratify, would establish a reconstruction fund for Ukraine that Ukrainian officials hope will be a vehicle to ensure future American military assistance.

The agreement is mutually beneficial for both countries, allowing U.S. businesses to make money if the Ukrainian economy grows.

The agreement sends a "strong signal" to the Kremlin and is expected to strengthen positions in peace talks with Russia, said U.S. Treasury Secretary Scott Bessent.

Reference Sources

1. huffpost - Ukraine And U.S. Finally Sign Minerals Deal. Here's What It Means.
2. eurodayfr - Using: what the vast economic agreement signed between Ukraine and the United States contains
3. newsukraine - US says Ukraine minerals deal could impact talks with Russia
4. newsukraine - Intensive attack on Odesa: Many damages in city reported, fires break out
5. ukrinform - National Guard fighters destroy Russian ammunition depots, equipment in Kharkiv region

The CommonWealth English daily news digest is a service curated by the CommonWealth English team with the help of AI tools.

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