April 20, 2024

Microsoft (MSFT) Q4 2023 earnings report

Microsoft CEO Satya Nadella is seen at an event with senior officials and CEOs in the East Room of the White House in Washington on June 22, 2023.

Chris Kleponis | CNP | Bloomberg | Getty Images

Microsoft It will report results for its fiscal fourth quarter after the market closes on Tuesday.

Here are the key numbers to follow:

  • Earnings: $2.55 per share, adjusted, as analysts expected, according to Refinitiv.
  • Income: $55.47 billion as expected by analysts, according to Refinitiv.

Based on analysts’ projections, Microsoft will close fiscal 2023 with revenue growth below 10% for the first time since 2017. Growth for the latest quarter is expected to come in at around 7%. Businesses have been delaying cloud and software deployments since last year due to economic uncertainty and the potential for higher interest rates.

Microsoft CEO Satya Nadella told employees in May that the company will not raise salaries this year.

Analysts polled by CNBC and StreetAccount expect Microsoft to report about 25% year-over-year growth in revenue from the Azure public cloud, which rivals Amazon Web services and Google Cloud Platform. Microsoft does not report Azure revenue in dollars. The projected growth rate is similar to what analysts expect from Google’s cloud division. Parent company Alphabet also reports results after hours on Tuesday.

During the quarter, Microsoft expanded its broad alliance with OpenAI to capitalize on renewed interest in artificial intelligence, following the launch of the startup’s ChatGPT chatbot in November. Microsoft introduced a chatbot powered in part by OpenAI language models to help workers make sense of their employers’ data, and told developers they will be able to build plugins that people can access through ChatGPT, the Bing search engine chatbot, and other tools.

Investors are eager to resolve Microsoft’s deal to buy Activision Blizzard for nearly $69 billion, which was agreed in January 2022. Earlier this month, an appeals court denied the Federal Trade Commission’s bid to stop the transaction. Activision’s shares have soared past $92.50, close to the $95 that Microsoft agreed to pay, indicating optimism that the deal is on track to close.

Microsoft shares have gained 44% in the year to date, while the S&P 500 is up 19%.

In June, Microsoft said it expected to take a $425 million charge in the quarter to pay a fine from the Irish Data Protection Commission after the authority looked into whether the company’s LinkedIn unit breached the European Union’s General Data Protection Regulation.

Executives will discuss the quarterly results with analysts and issue guidance on a conference call beginning at 5:30 pm ET.

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