Latest news with #CopilotStudio
Yahoo
3 days ago
- Business
- Yahoo
MSFT vs. PEGA: Which Agentic AI Vendor is a Better Buy in 2H25?
The artificial intelligence (AI) revolution has entered a new phase with the emergence of agentic AI — systems capable of autonomous decision-making and task execution rather than merely assisting human users. Two prominent players in this space, Microsoft MSFT and Pegasystems PEGA, are taking distinctly different approaches to capitalize on this transformative technology. Microsoft leverages its massive cloud infrastructure and enterprise software ecosystem to integrate agentic capabilities across its portfolio, while Pegasystems focuses on specialized workflow automation and legacy system modernization powered by AI companies recently announced significant expansions of their agentic AI offerings, with Microsoft evolving Copilot into autonomous digital workers and Pega enhancing its Blueprint platform to automatically transform legacy systems into modern applications. The timing of these announcements, coupled with strong financial performance from both companies, makes for a compelling comparison as investors seek exposure to the next wave of AI delve deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now. Microsoft's approach to agentic AI represents a comprehensive platform strategy that spans its entire technology stack. The company's third-quarter fiscal 2025 results demonstrated continued momentum, with total revenues reaching $70.1 billion, up 13% year over year. Microsoft Cloud revenues of $42.4 billion grew 22% in constant currency, with Azure showing particularly strong performance at 33% growth, including 16 percentage points from AI services company's agentic AI strategy centers on transforming Copilot from a simple assistant into autonomous digital workers capable of reasoning, planning, and acting independently. Microsoft processed more than 100 trillion tokens during the quarter, representing a five-fold increase year over year, indicating massive adoption of its AI services. The company has introduced specialized agents like Sales Agent and Customer Service Agent while enabling customers to build custom agents through Copilot Studio, with more than 230,000 organizations already using the scale advantages are evident in its infrastructure investments, with capital expenditures of $21.4 billion in the quarter supporting long-term monetization. The company's diverse revenue streams provide stability, though this same diversification may limit the upside potential from any single technology trend. Azure's strong performance demonstrates Microsoft's ability to capture enterprise AI workloads, but the company's massive size means incremental growth from agentic AI represents a smaller percentage impact on overall Zacks Consensus Estimate for Microsoft's fiscal 2025 earnings is pegged at $13.36 per share, indicating a 13.22% year-over-year increase. Microsoft Corporation price-consensus-chart | Microsoft Corporation Quote Find the latest EPS estimates and surprises on Zacks Earnings Calendar. Pegasystems presents a compelling pure-play opportunity in enterprise agentic AI with its specialized focus on workflow automation and legacy system modernization. The company's first-quarter 2025 results showcased accelerating momentum, with Annual Contract Value (ACV) growing more than 13% year over year and Pega Cloud ACV surging 23%. The company generated exceptional free cash flow of $202 million, demonstrating the profitability of its subscription model revolutionary Blueprint platform represents a breakthrough in agentic AI applications, enabling organizations to automatically analyze and convert legacy system assets into modern cloud applications. This addresses a massive market opportunity, as Pega research indicates 88% of IT decision makers cite technical debt as impacting competitive agility. The enhanced Blueprint capabilities now leverage agentic AI to ingest diverse inputs, including videos, documentation, code, and UI screens, dramatically accelerating digital transformation timelines from months to company's focused approach to enterprise workflow automation positions it perfectly for the agentic AI revolution. Unlike broader platform providers, Pega has built its entire value proposition around intelligent automation and decision-making, making agentic AI a natural evolution rather than an add-on feature. With over 1,000 new Blueprints created weekly — more than double the rate from months earlier — customer adoption is accelerating rapidly. The company's smaller scale means successful agentic AI implementations can drive significant percentage growth in key Zacks Consensus Estimate for PEGA's 2025 earnings is pegged at $1.88 per share, indicating a 24.5% year-over-year increase. Pegasystems Inc. price-consensus-chart | Pegasystems Inc. Quote Recent market performance reveals a telling divergence between the two stocks, with Pegasystems significantly outpacing Microsoft over the past three months. PEGA shares have surged 39.5% compared to Microsoft's 26% rise, with Pegasystems also outperforming the broader Zacks Computer and Technology sector. This superior price performance reflects growing investor recognition of Pega's specialized positioning in the agentic AI market and the accelerating adoption of its Blueprint platform Image Source: Zacks Investment Research The valuation metrics present an intriguing contrast that further supports Pegasystems' investment appeal. Microsoft trades at a price-to-earnings ratio of 32.93x, commanding a significant premium that reflects its market dominance and diversified revenue streams but also suggests limited valuation expansion potential. In stark contrast, Pegasystems trades at a more modest 13.2x P/E multiple despite its stronger recent performance and focused exposure to high-growth agentic AI applications. Image Source: Zacks Investment Research While Microsoft offers stability and comprehensive AI capabilities, Pegasystems presents superior upside potential for the second half of 2025. Pega's specialized focus on enterprise workflow automation aligns perfectly with agentic AI capabilities, creating a more concentrated exposure to this transformative technology. The company's accelerating ACV growth, innovative Blueprint platform, and smaller scale mean that successful agentic AI adoption can drive outsized returns. Investors should consider buying Pegasystems stock to capitalize on its focused agentic AI strategy while holding or waiting for better entry points in Microsoft, where AI represents incremental rather than transformational growth potential. PEGA currently sports a Zacks Rank #1 (Strong Buy), whereas MSFT has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microsoft Corporation (MSFT) : Free Stock Analysis Report Pegasystems Inc. (PEGA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Hans India
03-06-2025
- Business
- Hans India
Microsoft lays off more employees after huge job cut in AI era
New Delhi: Tech giant Microsoft has cut hundreds of more jobs just weeks after reducing nearly 3 per cent of its global workforce in the AI era. As per a filing with Washington state's Employment Security Department, 305 additional employees in Redmond, Washington have been asked to leave. A company spokesperson said in a statement the latest headcount reduction is in addition to the 6,000 job cuts announced last month, which is roughly 3 per cent of its global workforce. "We continue to implement organisational changes necessary to best position the company for success in a dynamic marketplace," the spokesperson was quoted as saying in reports. Microsoft CEO Satya Nadella has said that the recent layoffs were not linked to employee performance but due to organisational restructuring. Addressing staff during a town-hall meeting, Nadella said the layoffs were necessary to realign teams in accordance with Microsoft's evolving priorities, particularly its growing focus on artificial intelligence. He acknowledged the emotional toll of the decision but underscored that it was driven by strategic shifts, not shortcomings in productivity or talent. Last month, Frank X Shaw, Chief Communications Officer, Microsoft, said that 'We've entered the era of AI agents'. 'Thanks to groundbreaking advancements in reasoning and memory, AI models are now more capable and efficient, and we're seeing how AI systems can help us all solve problems in new ways. For example, 15 million developers are already using GitHub Copilot, and features like agent mode and code review are streamlining the way they code, check, deploy and troubleshoot,' he said during the 'Microsoft Build 2025' event. Hundreds of thousands of customers are using Microsoft 365 Copilot to help research, brainstorm and develop solutions, and more than 230,000 organisations — including 90 per cent of the Fortune 500 — have already used Copilot Studio to build AI agents and automations.
Yahoo
30-05-2025
- Business
- Yahoo
Microsoft Secures Massive Copilot Deal, Barclays Bets Big on AI Surge
May 30 - Microsoft (NASDAQ:MSFT) has struck a deal to supply Barclays (NYSE:BCS) with 100,000 licenses for its Copilot AI assistants. Under the deal, Barclays will implement Copilot across its workforce to streamline workflows, automate tasks and enhance decision-making. Warning! GuruFocus has detected 3 Warning Sign with MSFT. The bank's move signals a shift toward AI-driven efficiency in banking services, with Copilot's capabilities potentially covering areas from customer service to risk analysis. Barclays follows a growing list of companies, Accenture (NYSE:ACN), Toyota (NYSE:TM), Volkswagen (VWAGY) and Siemens (SIEGY), all of which use Copilot for more than 100,000 employees combined. Microsoft has been promoting Copilot aggressively, offering customization through plugins and Graph connectors to fit different industry needs. The software giant also rolled out Copilot Studio, enabling clients to build bespoke AI assistants for tasks such as automated claims processing or manufacturing insights. The firm aims to make Copilot integral to corporate operations worldwide. At $30 per user per month, these agreements could yield tens of millions annually, with bulk discounts likely for major corporations. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
30-05-2025
- Business
- Yahoo
Microsoft Secures Massive Copilot Deal, Barclays Bets Big on AI Surge
May 30 - Microsoft (NASDAQ:MSFT) has struck a deal to supply Barclays (NYSE:BCS) with 100,000 licenses for its Copilot AI assistants. Under the deal, Barclays will implement Copilot across its workforce to streamline workflows, automate tasks and enhance decision-making. Warning! GuruFocus has detected 3 Warning Sign with MSFT. The bank's move signals a shift toward AI-driven efficiency in banking services, with Copilot's capabilities potentially covering areas from customer service to risk analysis. Barclays follows a growing list of companies, Accenture (NYSE:ACN), Toyota (NYSE:TM), Volkswagen (VWAGY) and Siemens (SIEGY), all of which use Copilot for more than 100,000 employees combined. Microsoft has been promoting Copilot aggressively, offering customization through plugins and Graph connectors to fit different industry needs. The software giant also rolled out Copilot Studio, enabling clients to build bespoke AI assistants for tasks such as automated claims processing or manufacturing insights. The firm aims to make Copilot integral to corporate operations worldwide. At $30 per user per month, these agreements could yield tens of millions annually, with bulk discounts likely for major corporations. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28-05-2025
- Business
- Yahoo
Why an Investment Bank Remains Bullish on Microsoft (MSFT)
Investment bank Cantor Fitzgerald remained upbeat on Microsoft Corporation (NASDAQ:MSFT) in a recent note to investors, highlighting what it sees as the tech giant's significant progress in AI. Cantor kept a $512 price target and an Overweight rating on the name. Cantor believes that the tech giant will soon be seen as a leader in agentic AI, based on products within the latter sector that it recently unveiled. For example, the investment bank was pleased by the tech giant's introduction of multiple agents to its M365 Copilot and Copilot Studio products. Meanwhile, Azure, MSFT's cloud-infrastructure unit, is producing AI apps, agents, and management tools, Cantor reported. Microsoft Corporation (NASDAQ:MSFT)'s launch of a coding agent and its introduction of new large-language models were also greeted enthusiastically by Cantor. MSFT's AI tools are expected to help developers, the investment bank added. While we acknowledge the potential of MSFT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MSFT and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
