microsoft The company plans to release its quarterly results after the market closes on Wednesday.
According to LSEG, analysts expect the following:
Earnings: $4.73 per share (adjusted) Revenue: $90.69 billion
For the first quarter of its fiscal year ending September 30, Microsoft will report in two business segments for the first time since 1998. For the past 11 years, the company has divided its Azure, Office, and Windows businesses into three segments.
Microsoft also plans to start disclosing its Azure cloud revenue in dollars. Analysts polled by Street Account expected $32.32 billion, representing growth of more than 44%.
The software giant, unlike other hyperscalers, has worked to become a bigger force in the artificial intelligence space through infrastructure expansion and product enhancements while continuing to generate free cash flow.
cloud rivals alphabet and Amazonwhich report their results on Wednesday and Thursday, respectively, had negative free cash flow in the June quarter. Meta announced last week that free cash flow was negative in the third quarter.
As of Tuesday’s close, Microsoft stock is up almost 10% since the beginning of the year, lagging the S&P 500 index, which has risen about 13% over the same period.
Microsoft announced 4,800 job cuts during its fiscal first quarter, followed by an announcement on Monday that it would offer up to 60,000 employees in acquisitions to balance costly AI increases with capital efficiencies.
Analysts surveyed by Street Account expected capital spending and finance leases to be $50.67 billion in the quarter.
Microsoft also established an AI implementation division during the quarter and announced the Copilot AI “super app” with coding capabilities.
Executives will discuss the results with analysts and provide guidance on a conference call beginning at 5:30 p.m. ET.
Spotlight: What to expect from Microsoft
