Microsoft CEO Satya Nadella speaks at the company’s Build developer conference on May 21, 2024 in Seattle.
Jason Redmond | AFP | Getty Images
Microsoft The company is scheduled to report fiscal fourth-quarter earnings on Tuesday after U.S. stocks close.
Here’s what analysts surveyed by London Stock Exchange Group (LSEG) are looking for:
- Earnings per share: $2.93
- income: $64.39 billion
Microsoft expects revenue to grow about 15% from $56.2 billion in the same period last year, following a 17% increase in the same period last year. last season. Google Parent letter Reported growth last week Slowed down YouTube ad revenue fell short of expectations this quarter.
Microsoft will likely find its strongest growth in cloud computing. Analysts surveyed by CNBC and StreetAccount expect revenue from Azure and other cloud services to grow 30%, down slightly from 31% in the previous quarter. Microsoft doesn’t break out Azure revenue in U.S. dollars.
Analysts at Evercore ISI, which has a buy rating on Microsoft stock, wrote in a note last week that they expect 7.8 percentage points of Azure’s growth to come from artificial intelligence services, up from 7 percentage points in the fiscal third quarter.
An improving PC market could bring some relief to the Windows operating system business, which shrank last year after a coronavirus-era computer buying boom. Technology industry research firm Gartner estimates that PC shipments grew 1.9% in the fourth quarter, higher than the 0.9% growth in the previous quarter.
In its fiscal fourth quarter, Microsoft began selling surface computer Has artificial intelligence capabilities to run certain models locally without the need for an internet connection. Dell, HP and other device makers are also launching their own so-called “Copilot+” PCs. CEO Satya Nadella “We’re bringing a real sense of joy and wonder to creating on PC,” said a press release in May.
Microsoft shares are up about 14% so far this year, slightly behind the S&P 500, which is up about 15%.
Executives will hold a conference call with analysts beginning at 5:30 p.m. ET to discuss the results and issue guidance.
