During an event marking Microsoft’s 50th anniversary at its Redmond, Washington headquarters on April 4, 2025, CEO Satya Nadella announced that the company plans to allow consumers to customize the Copilot digital assistant to meet their individual preferences.
David Ryder | Bloomberg | Getty Images
President Trump’s tariffs have been a hot topic in global news lately. However, during Microsoft’s earnings call with investors on Wednesday, the subject was only mentioned once in the prepared statements.
Amy Hood, Microsoft’s finance chief, referred to how tariffs have affected sales of personal computers and Windows operating system licenses sold to other PC manufacturers.
“Revenue from Windows OEM and device sales grew 3% year over year, surpassing expectations, as uncertainty surrounding tariffs kept inventory levels high throughout the quarter,” Hood stated.
While Microsoft offers Surface PCs and Xbox consoles, the impact on the company is expected to be less significant compared to others that rely heavily on physical goods.
Nevertheless, Microsoft may still experience effects from decreased software spending among struggling clients and may encounter rising costs when sourcing equipment internationally.
The company is making significant investments to acquire and install Nvidia graphics processing units globally to support OpenAI’s ChatGPT and other AI offerings.
During the call, CEO Satya Nadella mentioned that software could assist companies in mitigating rising costs due to tariffs. “If you consider software to be the most adaptable resource we have for tackling inflation or increasing efficiency, I believe we can offer substantial help,” he remarked. “Our focus will be on ensuring we support our customers while also aiming for market share growth.”
Microsoft’s portfolio includes various AI products like GitHub Copilot, which provides code suggestions for developers, and Microsoft 365 Copilot, which assists with queries in applications such as Excel and Teams.
Following the earnings call, Microsoft shares surged by about 8% in after-hours trading, as the company reported more revenue and earnings than analysts anticipated and provided an optimistic outlook.
WATCH: Corporate margins will face pressure due to tariffs, according to Morgan Stanley’s Guerra.
