Microsoft Corporation MSFT After facing criticism for failing to prevent major attacks, it introduced new anti-hacking initiatives that tied senior leaders' pay to cybersecurity milestones.
The company prioritizes security over new feature development and is adding a cybersecurity leader to its product team.
In November, Microsoft Commitment to a secure futureThis is the company's most significant security effort since co-founder Bill Gates redirected Windows development to focus on product security in 2002, Bloomberg reported.
However, a major government cybersecurity report highlighted shortcomings in Microsoft's security culture.
Microsoft's revamped security culture includes expanded day-to-day actions and oversight, reporting directly to the Deputy Chief Information Security Officer. Igor TsyganskyGlobal CISO.
Recent hacking incidents, including breaches linked to Russian and Chinese state-sponsored groups, have highlighted the need for robust security measures at Microsoft.
Microsoft reported in April that third-quarter revenue rose 17% from a year earlier to $61.9 billion, which beat analysts' consensus estimates of $60.804 billion. The company reported EPS of $2.94, beating analysts' estimates of $2.82.
Meanwhile, analysts remained bullish on Microsoft's outlook after the third quarter print, citing Azure and OpenAI, as well as a strong network of Windows, Office LinkedIn and Teams users. They said the company is positioned as “the clearest beneficiary of GenAI spending.”
Microsoft stock has risen more than 33% in the past 12 months. Investors can gain exposure to stocks through: technology Sector Selection SPDR Fund XLK and Fidelity MSCI Information Technology Index ETF FTEC.
MSFT Price action: Microsoft stock traded 2.01% higher at $405.82 at last check Friday.
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Disclaimer: This content is created in part using AI tools, and reviewed and published by Benzinga editors.
