Microsoft will announce financial results for the first quarter after the market closes on Tuesday.
Here’s what analysts expect:
- Earnings: $2.30 per share, adjusted, as expected by analysts, according to Refinitiv.
- Income: $49.61 billion as expected by analysts, according to Refinitiv.
Analysts have lowered their estimates in recent weeks due to fewer PC units and a stronger US dollar.
Analysts are looking for $49.61 billion in revenue from Microsoft in the fiscal first quarter, which ended Sept. 30. That would represent 9.5% year-over-year revenue growth, which would be the slowest growth since 2017, Microsoft CFO Amy Hood told analysts in July. Expect revenue growth to be 2% lower than it otherwise would be due to currency fluctuations .
Technology industry researcher Gartner said earlier this month that PC shipments in the quarter fell 19.5% year-on-year, and the chip maker AMD earlier this month it reported lower-than-expected interim quarterly results linked to a “weaker-than-expected PC market and significant inventory correction actions across the PC supply chain.” A slowdown in the PC market could lead to weaker Microsoft revenue from the Windows operating system.
Analysts expect Microsoft’s Azure cloud revenue to grow 36.4% year over year, compared with 40% growth in the previous quarter, according to a CNBC survey of 14 analysts. Analysts polled by StreetAccount expect Azure to grow 36.9%.
During the quarter, Microsoft began rolling out the first annual update to its Windows 11 operating system since the original version was released last year, and the company announced plans to slow the pace of hiring. and said it is cutting less than 1% of employees. . Microsoft also introduced Viva Engage, a portal in the Teams communication app where colleagues can share video stories.
Quarterly results will include small adjustments to how Microsoft reports revenue. Revenue from HoloLens augmented reality devices is shown in the More Personal Computing segment instead of the Intelligent Cloud segment. Microsoft has adjusted its forecast for the segments by about $100 million in connection with the change.
Microsoft shares are down about 26% so far this year, while the S&P 500 stock index is down nearly 20% over the same period.
Executives will discuss the results on a conference call beginning at 5:30 p.m. ET.
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