Introduction
Earnings Outlook
The FactSet consensus anticipates adjusted earnings per share of $2.65 for Microsoft’s fiscal first quarter, representing an increase from $2.35 in the previous year. This positive outlook reflects analysts’ confidence in the company’s continued growth and profitability.
Revenue Analysis
According to analysts tracked by FactSet, Microsoft is expected to report fiscal first-quarter revenue of $54.5 billion, up from $50.1 billion in the same period last year. This projected increase reflects Microsoft’s strong performance across various segments. Notably, the consensus estimate calls for $18.2 billion in revenue from the productivity and business-processes segment, $23.5 billion from the intelligent-cloud segment, and $12.9 billion from More Personal Computing.
Conclusion
As Microsoft gears up to disclose its earnings, the focus remains on its Azure cloud-computing business and its ability to leverage artificial intelligence while navigating spending pressures. Analysts anticipate strong financial results for the quarter, driven by revenue growth across multiple segments. All eyes will be on the company’s performance, particularly within the cloud-computing space.
Stock Movement
Shares of Microsoft have fallen following three of the company’s last five earnings reports, including when they dropped 3.8% after the most recent report. Microsoft shares are up 37% so far this year, while the Dow Jones Industrial Average (DJIA) has dropped about 1%.
Analysts’ Views
Guggenheim analyst John DiFucci
Evercore ISI analyst Kirk Materne
Raymond James analyst Andrew Marok
“Within the largest cloud providers, checks suggest Azure continues to dominate conversations in cloud AI, which could have led to potential early share gains, with more moderate/skeptical commentary pointing to Azure gaining ‘mind share’ in upcoming cloud spending.”
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