Satya Nadella, CEO of Microsoft, arrives for the annual Allen and Co. Solar Valley Media and Expertise Convention on the Solar Valley Resort in Solar Valley, Idaho, July 9, 2024.
Brendan McDermid | Reuters
Microsoft will report fiscal second-quarter outcomes after the U.S. market shut Wednesday.
Here is what analysts are searching for, based on LSEG:
- Earnings per share: $3.11
- Income: $68.78 billion
Wall Avenue predicts roughly 11% development 12 months over 12 months for the quarter that ended Dec. 31. That might signify Microsoft’s slowest income development since June 2023. The corporate warned in October that Azure cloud development would decelerate within the fiscal second quarter due to a delay from a third-party supplier.
Analysts polled by CNBC and StreetAccount count on 31.9% and 31.1% development from Azure and different cloud companies, respectively, within the quarter. Azure income grew 33% within the fiscal first quarter.
In the course of the fiscal second quarter, Microsoft introduced the Home windows 365 Cloud Hyperlink, a PC that company staff can use to entry their purposes and recordsdata saved within the cloud. The corporate’s GitHub unit introduced assist for synthetic intelligence fashions from Anthropic and Google for a programming chatbot along with current assist for OpenAI. Microsoft additionally invested a further $750 million into OpenAI through the quarter.
Analysts may ask administration why Microsoft didn’t take part in a Jan. 21 White Home press convention for the Stargate AI infrastructure venture involving OpenAI that would appeal to as much as $500 billion in funding.
Microsoft shares slipped 2% on Monday as buyers thought of the implications of AI fashions from DeepSeek, a Chinese language lab. DeepSeek in December launched an open-source mannequin that the lab mentioned it educated for $5.6 million, excluding prices of information and earlier analysis. That might make it extra environment friendly than fashions from main U.S. firms. And final week, DeepSeek mentioned its latest mannequin, R1, outperformed OpenAI’s in some checks.
“We should always take the developments out of China very, very severely,” Microsoft CEO Satya Nadella mentioned Jan. 22. Nadella has dedicated to spending $80 billion on AI infrastructure within the present fiscal 12 months.
Microsoft shares are up 6% in 2025, whereas the S&P 500 index has gained 3% in the identical interval.
Executives will focus on the quarterly outcomes with analysts and situation steerage on a convention name beginning at 5:30 p.m. ET.
That is breaking information. Please test again for updates.
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