What You Need To Know Ahead of Microsoft’s Earnings Report 2024
Microsoft (MSFT) is set to report fiscal fourth-quarter earnings after the closing bell on July 24, with investors likely to be watching for cloud segment growth and updates on the company’s artificial intelligence (AI) initiatives.
The tech giant is projected to report revenue of $64.38 billion, according to estimates compiled by Visible Alpha, representing a 14.6% rise over the year-ago period. Net income is expected to come in at $21.88 billion, or $2.93 per share, a 9.3% increase from the final quarter of fiscal 2024.
Growth of Azure Cloud is a Key Metric
The computer giant’s previous quarters’ earnings beats were mostly driven by Microsoft’s Azure cloud platform, so investors will probably be keeping an eye on the platform for continuous revenue growth.
Due to customers utilising the cloud platform to train and execute AI workloads, Azure has profited from the AI boom. As large tech makes investments in AI, the cloud industry has supported Microsoft’s increased capital spending.
Analysts at Goldman Sachs predict cloud revenue of $37.2 billion, up from both the same quarter last year and the previous one.
The analysts stated that they “think share gains in Azure and leadership in [generative artificial intelligence] could continue to set Microsoft on a separate trajectory as long as we are in the ‘Infrastructure’ build phase of the Gen-AI cycle.”
Business Highlight The Impact of AI
The company’s standing in the developing AI sector will probably be the main topic of discussion during Microsoft’s earnings call and report. The IT giant’s continued collaboration with OpenAI has helped it establish itself as a pioneer in AI.
The business might offer information on its Windows PCs optimised for AI tasks and the anticipated impact of the new hardware on Microsoft’s computing division.
As of Tuesday afternoon, Microsoft shares are up 0.3% at little over $444, adding to the stock’s over 18% increase year to date.