:max_bytes(150000):strip_icc()/GettyImages-2162030867-cf02c37f08324f9798b2af98d8fc552a.jpg "What You Need To Know Ahead of Microsoft’s Earnings Report")
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Key Takeaways
- Microsoft is set to report fiscal fourth-quarter earnings after the closing bell Tuesday, July 30.
- Analysts expect the company to report year-over-year revenue and earnings growth.
- Investors will be watching for sustained growth in Microsoft’s Azure cloud platform business.
- Microsoft could also provide investors with updates on its artificial intelligence initiatives.
Microsoft (MSFT) is set to report fiscal fourth-quarter earnings after the closing bell on July 30, 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 2023.
| Analyst Estimates for Q4 2024 | Q3 2024 | Q4 2023 | |
| Revenue | $64.38 billion | $61.86 billion | $56.19 billion |
| Diluted Earnings Per Share | $2.93 | $2.94 | $2.69 |
| Net Income | $21.88 billion | $21.94 billion | $20.08 billion |
Key Metric: Azure Cloud Growth
Investors will likely be watching for sustained revenue growth in Microsoft’s cloud platform, Azure, which fueled the tech giant’s earnings beats in previous quarters.
Azure has benefited from the AI boom as customers train and run AI workloads using the cloud platform. The cloud business has helped support Microsoft’s increased capital spending as big tech invests in AI.
Goldman Sachs analysts expect cloud revenue of $37.2 billion, representing growth from both the quarter prior and the year-ago period.
The analysts said 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 Spotlight: AI Impact
Microsoft’s earnings report and call will likely be focused on the company’s position in the evolving AI marketplace. The tech giant has established itself as an early AI leader through its ongoing partnership with OpenAI.
The company could provide updates about its Windows PCs designed for AI workloads and how the new devices are expected to affect Microsoft’s computing business.
Microsoft shares were up 0.3% at just above $444 on Tuesday afternoon, contributing to the stock’s roughly 18% year-to-date gain.