Q2 Earnings Highlights: Pegasystems (NASDAQ:PEGA) Vs The Rest Of The Automation Software Stocks

Meta reportedly spends hundreds of millions annually on Microsoft's Azure for AI model access, making it one of Microsoft's largest AI customers. Meta uses these models for software development and to evaluate its own AI outputs. Both companies declined to comment. Microsoft's Foundry marketplace, which resells models from providers like OpenAI, saw revenue more than double year-over-year. Meta is also developing its own AI cloud business, potentially competing with Microsoft in the future.

Moody's affirmed Microsoft's Aaa rating, citing its scale, profitability, and market leadership. The company expects 18-19% revenue growth to $466B by FY2028, driven by Azure and AI, but margins may decline due to lower Azure margins and AI investments. Moody's forecasts a $4B free cash flow deficit in FY2027-2028, with capital expenditures at 40% of revenue. The stable outlook assumes strong profit growth and robust cash balances.

ServiceNow reported Q2 2026 results beating expectations, with subscription revenues up 24.5% YoY to $3.877B and EPS of $0.90. The company raised full-year guidance, projecting 21% growth. Bank of America analyst Liani sees undervaluation, setting a $150 target, citing strong AI partnerships and market underperformance.

Take-Two, parent of Rockstar Games, filed subpoenas against Microsoft and Discord to obtain user data, aiming to identify the leaker of GTA 6 gameplay footage. The subpoenas seek records to pinpoint users linked to specific Discord servers and Microsoft accounts. GTA 6 is set to release on November 19 for PS5 and Xbox Series X|S.

Take-Two issued federal subpoenas to Microsoft and Discord to identify the GTA 6 leaker, CYBERLEEK. The leaks, which include game footage and a cutscene, caused Take-Two's shares to drop, wiping $2 billion off its market value. The companies have until September 4 to comply. The leaker is also promoting a memecoin through the leaks.

Klarna CMO David Sandström to depart early 2027. Microsoft AI CMO Andréa Mallard leaves after six months. Gap Inc. hires Justin Breton and Pam Kaufman for 'Fashiontainment'. Vuori names Carey Collins Krug as CMO.