Microsoft is scheduled to report its fiscal fourth-quarter earnings, with analysts predicting earnings per share of $2.93 and revenue of $64.39 billion. It is expected that Microsoft will show revenue growth of approximately 15% from the previous year, continuing the trend of expansion from the prior quarter.
The strongest growth for Microsoft is anticipated to come from its cloud computing services, specifically Azure. Analysts are forecasting a revenue growth of 30% from Azure and other cloud services, slightly lower than the 31% growth seen in the previous quarter. There is speculation that about 7.8 points of Azure’s growth will come from artificial intelligence services, indicating a shift towards innovation within this sector.
With an expected improvement in the PC market, Microsoft’s Windows operating system business may see some relief. After a decline last year due to the global pandemic, PC shipments have started to grow again. This growth could benefit Microsoft’s Windows operating system business as more consumers invest in new PCs. Additionally, the introduction of Surface PCs with AI features is likely to attract customers looking for enhanced capabilities.
Despite the positive expectations for the earnings report, Microsoft’s stock performance has slightly underperformed the S&P 500 index, gaining only about 14% year to date. This discrepancy will be something analysts will be paying close attention to during the earnings call.
Overall, Microsoft’s earnings report is highly anticipated, with a focus on revenue growth, cloud computing services, and the performance of the Windows operating system business. With the tech giant’s stock performance in the spotlight, analysts and investors will be closely monitoring the results of the fiscal fourth quarter.
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