Microsoft is preparing to release its fiscal first quarter results after the market closes on Wednesday, with analysts expecting earnings of $4.73 per share and revenue of $90.69 billion. This report will be notable as it will be the first time since 1998 that Microsoft reports under two operating segments, having previously operated with three segments for over a decade.
Additionally, the company will disclose Azure cloud revenue in dollars for the first time, with analysts anticipating $32.32 billion in Azure revenue, reflecting a growth rate exceeding 44%.
Microsoft is actively enhancing its position in artificial intelligence through infrastructure investments and product improvements, while maintaining positive free cash flow, unlike competitors such as Alphabet and Amazon, which reported negative free cash flow in their recent quarters. Year-to-date, Microsoft shares have risen nearly 10%, although this lags behind the S&P 500's 13% gain.
The company has also announced job cuts totaling 4,800 and is offering buyouts to up to 60,000 employees to manage costs associated with its AI initiatives. Analysts project capital expenditures and finance leases of $50.67 billion for the quarter. Microsoft has also established an AI implementation unit and introduced a Copilot AI 'super app' with coding capabilities.
Executives will discuss the earnings results and provide guidance during a conference call at 5:30 p.m. ET