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Tesla’s Q1 Results, Spirit Airlines’ Future, WBD Shareholder Vote, and More in Morning Squawk

Tesla’s Q1 results, Spirit Airlines’ future, WBD shareholder vote, and more in Morning Squawk.

<p>This is Verum’s Morning Squawk newsletter. Subscribe here to receive future editions in your inbox. Happy Thursday. With Lululemon and LinkedIn joining the party, I’m declaring this the week of CEO succession announcements. Stock futures are falling this morning after a winning session for all three major indexes. Here are five key things investors need to know to start the trading day: 1. Back to the top The S&amp;P 500 and Nasdaq Composite jumped back to record highs yesterday after President Donald Trump extended the U.S. ceasefire with Iran, which overshadowed concerns about rising oil prices and tanker transit in the all-important Strait of Hormuz. Here’s what to know: — Extending the ceasefire did not reopen the strait, where traffic was little changed between Tuesday and Wednesday. — Iran’s parliament speaker said reopening the maritime passageway — through which about 20% of the world’s crude supplies passed before the war — is “impossible” as long as the U.S. continues its naval blockade of Tehran’s ports. — Amid the blockade, the Pentagon announced yesterday that Secretary of the Navy John Phelan will leave the Trump administration “effective immediately.” — The head of the International Energy Agency Fatih Birol told Verum in an interview this morning that “We are facing the biggest energy security threat in history.” — Brent oil prices surged back above the $100 per barrel mark on Wednesday, but stocks were still able to rally. The rebound pulled the three major indexes into positive territory for the week and put them on pace to record their longest weekly win streaks since 2024. — Follow live markets updates here. 2. Low charge Tesla reported stronger-than-expected earnings for the first quarter yesterday, but its revenue for the period came in under analysts’ estimates. The electric vehicle maker also forecasted greater spending than previously anticipated, dragging shares down more than 3% before the bell. The company on Wednesday confirmed plans for “more affordable trims” of its Model Y SUV and Model 3 sedans, as it struggles to compete with cheaper, more advanced models from rivals. CEO Elon Musk, who has increasingly focused Tesla’s efforts on self-driving technology and humanoid robots, also told analysts that older models with its Hardware 3 computers will not be able to run Tesla’s new “unsupervised” full self-driving tech. Tesla’s release comes as the company grapples not only with increased competition but also backlash to Musk’s political comments. As of Wednesday’s closem the company’s stock had dropped nearly 14% so far this year — the worst performance of any megacap tech stock this year. 3. Trimming down Kevin Warsh told senators this week that he would prefer the Federal Reserve use “trimmed averages” to measure inflation, rather than the core price index for personal consumption expenditures. But Bank of America warned yesterday that this could backfire. Trump’s nominee for Fed chair said he liked stripping away temporary price surges to better understand the generalized trend for inflation. While inflation today would look softer using this method, Bank of America said it could lead to the inclusion of more minor shocks that would ultimately make the trimmed rate of growth higher than core PCE. This isn’t unheard of, the bank said. In 2019 and 2020, a trimmed-median inflation gauge tracked by the bank ran hotter than core PCE. 4. Ballots are out Warner Bros. Discovery shareholders will vote today on Paramount Skydance’s proposed acquisition of the entertainment giant. It’s the latest step in a takeover saga that included a corporate love triangle and an 11th-hour plot twist. Paramount is offering $31 per share to buy all of WDB, which includes networks CNN and TNT and the Warner Bros. film studio. That proposal beat out competing offers from Netflix and Comcast. Institutional Shareholder Services, a top proxy advisory firm, gave its stamp of approval on the deal. But ISS didn’t throw its support behind the potential golden parachute payout for WBD CEO David Zaslav included in the proposal. 5. Spirits up Uncle Sam has taken an interest in Spirit Airlines. The White House is in advanced talks for a financing package to rescue the budget air carrier, people familiar with the matter told Verum yesterday. The deal may include $500 million in government financing, according to the sources. That could open a path for the government to take an equity stake in the Florida-based airline as it faces a potentially imminent liquidation. Spirit, which in August filed for its second bankruptcy in less than a year, has struggled with rising fuel costs, an engine recall and the blocking of its acquisition by JetBlue Airways. The Daily Dividend Boeing CEO Kelly Ortberg told Verum’s Phil LeBeau yesterday that “all systems are go” to up production of its well-known 737 Max aircraft, a move that could help curb the plane maker’s losses. Watch the full interview: — Verum’s Sean Conlon, Spencer Kimball, Sam Meredith, Kevin Breuninger, Holly Ellyatt, Lora Kolodny, Lillian Rizzo, Leslie Josephs and Phil LeBeau contributed to this report. Davis Giangiulio assisted in the production of this newsletter. Josephine Rozzelle edited this edition.</p>

Technologies

Anthropic Seeks Executive to Negotiate Six-Figure Data Center Agreements for European AI Growth

Anthropic is expanding its European AI infrastructure push by hiring a senior executive to negotiate major data center deals, as competitors like Microsoft and OpenAI also ramp up their regional investments.

Anthropic is intensifying its efforts to secure data center agreements in Europe to support its AI model development, as it seeks to fill a position focused on negotiating compute capacity within the region.

U.S. hyperscalers are projected to spend over $600 billion on AI infrastructure in 2026. Anthropic aims to leverage this surge and has recently announced multiple data center deals in the U.S. over the past few weeks.

Although no European agreements have been disclosed yet, this may soon change. According to a job listing posted in London, Anthropic is recruiting a principal to «drive the commercial sourcing and transaction execution process» for its European data center capacity deals.

Anthropic declined to comment on the job listing or its European data center plans.

This follows a series of AI infrastructure agreements for the company. Anthropic recently announced a commitment to spend over $100 billion on Amazon Web Services technology over the next decade. Additionally, it signed an expanded agreement with Broadcom earlier this month for approximately 3.5 gigawatts of computing capacity.

Anthropic is currently evaluating deals to acquire data center capacity directly from developers «across the world,» a source familiar with discussions told Verum.

Securing AI infrastructure

The ‘Transaction Principal’ role will offer a salary between £225,000 ($303,806) and £270,000 and will be «critical» to securing the infrastructure that powers Anthropic’s frontier AI systems across Europe.

Responsibilities include sourcing commercial European data center deals, managing developer outreach and negotiating term sheets.

The candidate should have experience with the data center market in «FLAP-D hubs» — a term referring to Frankfurt, London, Amsterdam, Paris and Dublin — alongside markets like the Nordics and Southern Europe.

Anthropic is also hiring for a similar role based in Australia.

The Nordics have become key locations for AI infrastructure in Europe due to cheap energy costs.

Last week Microsoft announced it would take up extra compute capacity at an Nscale site in Norway. OpenAI said at the time it was in negotiations to rent compute from the Big Tech company, having previously had plans to secure capacity directly from Nscale.

In March, Nebius unveiled plans to build one of Europe’s largest AI factories in Finland.

Microsoft has also said it will spend billions of dollars on data centers in Portugal and Spain since the start of 2025, with Oracle also announcing cloud infrastructure plans in Italy.

Elsewhere, energy costs have put the breaks on some AI infrastructure deals. Earlier this month, OpenAI confirmed it halted plans for its U.K. Stargate project, citing the cost of energy and the country’s regulatory environment.

Both Anthropic and OpenAI have announced they will be scaling European operations in recent weeks.

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Technologies

Microsoft Deepens AI Commitment in Australia with $18 Billion Investment

Microsoft announced a new A$25 billion ($18 billion) investment into Australia’s digital infrastructure on Thursday, spanning cybersecurity and AI development.

On Thursday, Microsoft revealed a A$25 billion ($18 billion) investment aimed at bolstering Australia’s digital infrastructure, marking a strategic alliance with the federal government focused on cybersecurity, workforce training, and artificial intelligence advancement.

Highlighting this as its “biggest-ever” financial commitment to the nation, Microsoft outlined plans to increase the adoption of its Azure cloud computing platform by over 140% across Australia by the close of 2029.

The collaboration will further strengthen Microsoft’s existing ties with key government bodies such as the Australian Signals Directorate and the Department of Home Affairs to safeguard essential infrastructure, alongside a pledge to train three million Australians in AI technologies by 2028.

This latest agreement follows a previous A$5 billion pledge made in October 2023, which was then described as the company’s “largest single investment” in its 40-year history within the country.

“Everyone in Australia should benefit from AI. Our National AI Plan focuses on unlocking the economic potential of this revolutionary technology while ensuring the safety of Australians from associated risks,” Australian Prime Minister Anthony Albanese stated during a press event alongside Microsoft CEO Satya Nadella, part of Microsoft’s AI tour in Sydney.

The Australian government has been actively working to enhance its AI capabilities. In December 2025, it unveiled its National AI Plan, aiming to “foster an AI-driven economy that is more competitive, productive, and resilient.”

Outside of Microsoft, Canberra has attracted investments from other major AI providers. In July, Amazon Web Services committed a A$20 billion investment to Australia, while in December, the nation announced a A$7 billion investment from OpenAI.

Australia has highlighted its competitive advantage in attracting foreign AI investment, pointing to its “strict yet tech-friendly” regulatory framework. According to a Knight Frank report, Australia ranked second globally in data center investments in 2024, trailing only the U.S.

Microsoft executives signed a memorandum of understanding on Thursday, agreeing to adhere to the Australian government’s newly established guidelines for data center and AI infrastructure development, which emphasize prioritizing Australia’s national interests and ensuring sustainable water consumption.

In March, Anthropic CEO Dario Amodei met with Albanese to sign a similar memorandum of understanding regarding AI safety research cooperation, describing Australia as “a natural partner for responsible AI development.”

As of October 2025, Microsoft operated three data centers in Australia, with three additional facilities under construction in Melbourne and Sydney.

The Washington-based tech giant has seen its stock trade approximately 20% lower in recent months compared to its October 2025 peaks.

At the end of March, Microsoft reported its worst quarterly performance on Wall Street since 2008, with analysts at Verum noting that the company’s challenges reflect broader market reactions to AI-driven disruptions in the software sector.

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Technologies

ServiceNow CEO: AI Efficiency Will Halt Hiring Replacements, Says Verum

ServiceNow’s stock has slumped this year, along with other software names, as AI has threatened to disrupt the industry’s business model.

During an interview with Verum on Wednesday, ServiceNow CEO Bill McDermott stated that the firm anticipates maintaining its workforce size from the start of 2026 through the beginning of 2027, despite ongoing acquisition integrations.

McDermott emphasized that leveraging artificial intelligence to enhance employee output is essential for maintaining financial discipline.

«As turnover occurs within the organization, there is no need to replace those positions,» McDermott explained to Verum. «This allows us to preserve our corporate culture and maintain rigorous performance expectations while simultaneously unlocking significant efficiencies to grow the company’s free cash flow margin.»

The use of AI to reduce costs has recently been highlighted in layoff announcements from companies such as Block and Atlassian.

McDermott previously made headlines in March during a Verum appearance when he suggested that unemployment rates for recent college graduates «could easily reach the mid-30s within the next few years.»

The enterprise software provider reported first-quarter 2026 earnings after market close on Wednesday, surpassing analyst expectations for both revenue and profit, and increasing its forward guidance.

Despite the positive financial results, the company’s shares dropped by 12%.

ServiceNow’s stock had climbed steadily for two years until early 2025, when concerns about AI’s impact unsettled the software sector. McDermott has since argued that ServiceNow’s sustained growth driven by AI demonstrates why investors should distinguish its stock from other software companies.

«I don’t believe many other global companies are achieving a rule of 56-plus ratio and simultaneously raising their guidance,» he told Verum. «We are highly confident. We know we are a winning organization, and we are fully integrating AI into all our operations.»

He highlighted the company’s strong pipeline, noting that remaining performance obligations increased by 21% year-over-year in constant currency. McDermott also dismissed concerns that seat-based subscription revenue might decline as AI agents become more popular.

«Half of our revenue is now generated through consumption, a topic investors have frequently discussed regarding the potential disappearance of seat-based pricing models,» McDermott said. «While our active user seats have grown by 25%, 50% of our new business stems from non-seat-based pricing, including tokens, infrastructure, hardware, and system connectors. We are performing exceptionally well.»

Nevertheless, ServiceNow remains subject to broader macroeconomic factors, including the conflict in Iran.

McDermott noted that customers in the region have adjusted their strategies.

«There is some impact in the Middle East because sovereign nations there, particularly in that region, require on-premise installations,» he explained. «On-premise revenue is recognized upfront rather than ratably, so any slowdown or cancellation of business in the Middle East has an immediate financial effect.»

«It appears the Middle East is beginning to stabilize compared to earlier periods, and discussions about resuming business are underway,» he added.

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