What You Need to Know Before Microsoft’s Earnings Report

UPDATED – July 26, 2024: This article has been updated to reflect more recent analyst estimates and stock price information.

Key conclusions

Microsoft is scheduled to report its fiscal fourth quarter financial results after the close of trading on Tuesday, July 30.
Analysts expect the company to post year-over-year revenue and profit growth.
Investors will be watching for continued growth in Microsoft’s Azure cloud platform business.
Microsoft may also provide investors with updates on its AI initiatives.

Microsoft (MSFT) is set to report fiscal fourth-quarter earnings after the close of trading on July 30. Investors will likely be watching for developments in its cloud computing business and updates on the company’s artificial intelligence (AI) initiatives.

The tech giant is expected to post revenue of $64.37 billion, up 14.6% from the same period last year, according to estimates from Visible Alpha. Net income is expected to come in at $21.88 billion, or $2.93 per share, up 9.3% from the last quarter of fiscal 2023.

	Analysts’ estimates for Q4 2024	Q3 2024	Q4 2023
Income	$64.37 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 looking at continued revenue growth from Microsoft’s cloud platform, Azure, which has fueled the tech giant’s stronger financial results in recent 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 forecast that cloud services revenues will reach $37.2 billion, which will mean an increase both compared to the previous quarter and the same period last year.

The analysts said they “believe Azure’s share gains and leadership in (generative AI) could continue to set Microsoft on a distinct trajectory as we remain in the ‘infrastructure’ phase of the Gen-AI cycle.”

Business in Focus: The Impact of AI

Microsoft’s earnings report and call will likely focus on the company’s position in the emerging AI market. The tech giant has solidified its position as an early AI leader thanks to its ongoing partnership with OpenAI.

The company may provide updates on its Windows PCs designed for AI workloads and how the new devices will impact Microsoft’s IT business.

Microsoft shares are up about 13% year to date and closed at $425.27 on Friday.