Microsoft CEO Satya Nadella attends an event with senior officials and CEOs in the East Room of the White House in Washington, June 22, 2023.
Chris Klaibornes | China National Petroleum Corporation | Bloomberg | Getty Images
Microsoft It will report its fiscal fourth-quarter results after the market close on Tuesday.
Here are the key numbers to follow:
- income: An adjusted $2.55 per share was in line with analysts’ expectations, according to Refinitiv data.
- income: The figure came in at $55.47 billion, in line with analysts’ expectations, according to Refinitiv.
According to analysts’ forecasts, Microsoft’s fiscal year 2023 revenue growth will be below 10% for the first time since 2017. Growth in the latest quarter is expected to be around 7%. Businesses have been delaying cloud and software deployments since last year due to economic uncertainty and the possibility of rising interest rates.
Microsoft Chief Executive Satya Nadella told employees in May that the company would not raise wages this year.
Analysts polled by CNBC and StreetAccount expect Microsoft’s revenue from its Azure public cloud to grow about 25% year-over-year, with rivals in the cloud amazon web services and Google cloud platform. Microsoft doesn’t report Azure revenue in dollars. The projected growth rate is similar to analysts’ expectations for Google’s cloud unit. Parent company Alphabet also reported results after the close on Tuesday.
During the quarter, Microsoft formed a broad alliance with OpenAI to capitalize on renewed interest in artificial intelligence, following the launch of its ChatGPT chatbot in November. Microsoft unveiled a chatbot powered in part by an OpenAI language model to help workers make sense of employer data, and told developers they’ll be able to build plugins that people can access through ChatGPT, the Bing search engine’s bot and other tools.
Investors are desperate for a resolution to Microsoft’s nearly $69 billion acquisition of Activision Blizzard, which was agreed in January 2022. Earlier this month, an appeals court denied the FTC’s motion to halt the deal. Shares of Activision Blizzard have climbed above $92.50, close to the $95 that Microsoft agreed to pay, reflecting optimism that the deal is nearing completion.
Shares of Microsoft have risen 44% so far this year, compared with a 19% gain for the S&P 500 .
In June, Microsoft said it expected to collect $425 million in fines from the Irish Data Protection Commission this quarter to pay the commission after it investigated whether the company’s LinkedIn unit violated the European Union’s General Data Protection Regulation.
Executives will discuss quarterly results and issue guidance with analysts on a conference call beginning at 5:30 p.m. ET.
watch: Griffin Securities: Microsoft is in a ‘natural and logical’ position in AI