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Microsoft and Meta reported exceptional quarterly earnings, both exceeding analyst expectations. Microsoft saw 18% revenue growth to $76.4 billion, with Azure cloud services up 39% year-over-year. Meta posted $47.5 billion in revenue with strong third-quarter forecasts. Both companies attribute their success to substantial investments in artificial intelligence technologies, with Microsoft leveraging partnerships with ChatGPT and Meta increasing expenditure on AI infrastructure. Their impressive performance boosted their stock prices and signals continued momentum in the tech sector's AI-driven growth.

OpenAI has achieved $12.7 billion in annualized revenue in 2025, tripling its previous figures. This growth stems from widespread adoption of ChatGPT and related services, with 500 million weekly active users reported by March 2025. Despite this success, OpenAI continues heavy reinvestment in infrastructure, including the Stargate AI supercomputer planned for 2026. The company is reportedly seeking additional funding of up to $40 billion at a $300 billion valuation. While leading the AI sector in revenue, OpenAI faces competition from companies like Anthropic. The company projects potential revenue of $174 billion by 2030 but doesn't expect to become cash-flow positive until reaching much higher revenue levels.

Microsoft and Meta drove a $500 billion surge in AI stocks after strong quarterly earnings, with their combined market values rising by $440 billion. Microsoft shares jumped 8% due to Azure cloud growth and AI investments, while Meta increased 9% with strong revenue forecasts and raised capital expenditure plans. The positive results boosted other AI companies like Nvidia and Amazon, reflecting Wall Street's enthusiasm for companies demonstrating concrete progress in artificial intelligence applications and infrastructure.

Cognizant surpassed Q2 2025 expectations with $5.25 billion in revenue, up 8.1% year-over-year, driven by strong enterprise demand for digital transformation services. Operating margin improved to 15.6%, while EPS increased 15% to $1.31. The company reported record 12-month bookings of $27.8 billion, including two mega deals exceeding $1 billion each. Cognizant raised its shareholder returns projection to $2.0 billion and updated its full-year 2025 revenue guidance to $20.7-$21.1 billion. The NextGen restructuring program concluded at the end of 2024, with the company now focused on strategic investments and operational excellence.