Microsoft earnings will land after the close — SkimNews
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- LSEG cites analyst expectations of $4.73 in adjusted earnings per share and $90.69 billion in revenue for Microsoft’s post-close Wednesday report.
- Microsoft will report its fiscal first quarter, ended Sept. 30, under two operating segments for the first time since 1998, after 11 years with three segments covering Azure, Office and Windows.
- Azure cloud revenue will begin being disclosed in dollars, with StreetAccount analysts forecasting $32.32 billion and growth of more than 44%.
- Microsoft continued producing free cash flow, while Alphabet and Amazon showed negative free cash flow in the June quarter and Meta said it went negative in the third quarter.
- Microsoft shares were up almost 10% year to date at Tuesday’s close, trailing the S&P 500’s roughly 13% gain.
- Microsoft said during the fiscal first quarter that it would cut 4,800 jobs and on Monday offered buyouts to up to 60,000 employees as it strives to balance the costly AI build-out with capital efficiency.
- StreetAccount projected $50.67 billion in Microsoft capital expenditures and finance leases for the quarter, during which Microsoft established an AI implementation unit and unveiled a coding-capable Copilot “super app.”
Why it matters: Microsoft’s positive free cash flow contrasts with Alphabet, Amazon and Meta, giving it a distinct funding profile for the AI build-out. For investors, the projected $50.67 billion in capex and leases quantifies management’s effort to balance the AI build-out with capital efficiency, alongside 4,800 job cuts and up to 60,000 buyouts.
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