Microsoft CEO Satya Nadella speaks during the company's Build developer conference in Seattle on May 21, 2024.
AFP | Getty Images
Microsoft is scheduled to announce its fourth-quarter results on Tuesday after the stock market closes in the United States.
Here is what the analysts surveyed by LSEG are looking for:
- Earnings per share: 2,93 €
- Revenue: 64.39 billion US dollars
Microsoft is expected to report revenue growth of about 15% over the same period last year ($56.2 billion), following 17% growth in the previous quarter. alphabet reported last week that growth slowed this quarter as YouTube's advertising revenue fell short of expectations.
Microsoft is likely to see the strongest growth in cloud computing. Analysts surveyed by CNBC and StreetAccount expect revenue growth of 30 percent for Azure and other cloud services, a slight decline from 31 percent in the previous quarter. Microsoft does not disclose Azure revenue in dollars.
Analysts at Evercore ISI, who recommend Microsoft shares as a “buy,” wrote in a note last week that they expect 7.8 percentage points of Azure's growth to come from artificial intelligence services, compared to 7 percentage points in the third fiscal quarter.
An improvement in the PC market could provide some relief to the Windows operating system business, which declined last year after a Covid-era computer buying spree. Technology researcher Gartner estimated that PC shipments rose 1.9% in the fiscal fourth quarter, compared with 0.9% growth in the previous quarter.
In the fiscal fourth quarter, Microsoft began selling Surface PCs with AI capabilities that certain models can run locally without requiring an internet connection. Dell, HP and other device makers also promoted their own so-called Copilot+ PCs. CEO Satya Nadella said at a press conference in May, “We're bringing real joy and a sense of wonder back to creativity on the PC.”
Microsoft shares have gained about 14 percent since the beginning of the year, slightly lagging the S&P 500 index, which has risen about 15 percent.
Executives will discuss the results and provide guidance in a conference call with analysts beginning at 5:30 p.m. ET.
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