Microsoft CEO Satya Nadella attends a global infrastructure and investment partner event held on the sidelines of the G7 Summit at the Borgo Egnazia resort in Saviletri, Italy, on June 13, 2024.
Mandel and | AFP | Getty Images
Microsoft First-quarter results will be announced after the close of regular trading on Wednesday.
Here are the consensus estimates from LSE analysts:
- Earnings per share: $3.10
- income: $64.51 billion
Revenue estimates imply annual growth of 14% for the quarter ending June 30.
In August, Microsoft said it would revise business unit reporting to reflect its management approach. Mobile and security services and some Windows revenue will now become part of the productivity and business process segment, which includes Office software.
Analysts polled by StreetAccount expected revenue in the segment to be $27.9 billion. That’s 36% higher than the $20.45 billion midpoint of management’s July forecast, as analysts’ forecasts factored in those changes.
Investors will get a clearer picture of cloud consumption. Analysts expect revenue from the smart cloud business, including Azure cloud infrastructure, to reach $24.04 billion. CNBC’s consensus on Azure’s growth is 32.8%, while StreetAccount’s consensus is 29.4%.
exist alphabetical In its earnings report on Tuesday, the Internet company said its cloud business, which competes with Azure, grew nearly 35% year over year to $11.35 billion, beating expectations. AmazonThe company leading the cloud infrastructure market is scheduled to report results after the market close on Thursday.
For Microsoft’s more personal computing efforts, the StreetAccount consensus is $12.56 billion. Microsoft will announce to device manufacturers the combined growth rate of device sales and Windows operating system license sales. Industry researcher Gartner estimated PC shipments fell 1.3% in the quarter.
During the quarter, Microsoft worked to help customers recover after defective updates mass strike Security software cripples Windows computers around the world. Microsoft said it will cooperate with BlackRock to establish an artificial intelligence infrastructure investment fund with an initial capital target of US$30 billion.
Microsoft’s artificial intelligence investments will continue to be a major focus for investors as the company builds out infrastructure and ramps up chip spending to handle heavier workloads. Microsoft is a major investor in ChatGPT creator OpenAI, which was valued at $157 billion in a funding round earlier this month.
As of June 30, Microsoft’s uninitiated financial leases have accumulated more than $108 billion, which UBS analysts said may include third-party cloud spending to meet artificial intelligence needs.
Meanwhile, Microsoft is spending more cash on properties and equipment. Analysts surveyed by Capital IQ expected first-quarter spending to be $14.58 billion, a 47% increase from the same period last year.
As of Tuesday’s close, Microsoft’s stock price was up about 15% for the year, while the Nasdaq was up about 25% during the same period.
Executives will hold a conference call with analysts beginning at 5:30 p.m. ET to discuss the results and issue guidance.
watch: Microsoft Copilot: The use of artificial intelligence within the company is accelerating, but the cost issue is worrying
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