Microsoft Upcoming Earnings Alert
📅 Microsoft will announce its Q4 2024 earnings report on 30th July 2024
Microsoft (MSFT) will announce its fiscal fourth-quarter earnings after the market closes on July 30. Investors will be closely monitoring the growth in the cloud segment and any updates on the company's artificial intelligence (AI) initiatives.
Microsoft is experiencing strong demand for its cloud infrastructure monitoring, web-based application performance management, and human capital management solutions, driven by the increasing migration of workloads to the cloud.
In the fiscal third quarter, Azure and other cloud services revenue grew by 31% (31% in constant currency), with AI services contributing roughly 7% points to this growth, surpassing the previous quarter's growth of 30% (28% in constant currency).
For the fiscal fourth quarter, Microsoft expects Azure revenue growth in constant currency to be between 30% and 31%, with increasing contributions from all Azure AI services.
The company is also seeing a rise in large Azure deals from industry leaders, including recent billion-dollar-plus multi-year commitments from Cloud Software Group and The Coca-Cola Company. In the fiscal third quarter, the number of Azure deals worth over $100 million increased by more than 80% year over year, while the number of deals worth over $10 million more than doubled.
In the last reported quarter, AWS revenues (18% of Amazon's total sales) rose 17% year over year to $25.04 billion. The expansion of AWS's portfolio has helped Amazon maintain its dominance in the cloud domain.
Microsoft’s AI innovation continues to build on its strategic partnership with OpenAI, with over 65% of the Fortune 500 now using Azure OpenAI Service. The company is also innovating and partnering broadly to offer customers a diverse selection of frontier models, open-source models, large language models (LLMs), and small language models (SLMs).
The number of Azure AI customers and their average spending are both increasing. More than half of these customers also utilize Microsoft’s data and analytics tools. Customers are developing intelligent applications on Azure PostgreSQL and Cosmos DB, with deep integrations with Azure AI.
Additionally, Microsoft revealed a $3.3 billion investment to bolster Southeast Wisconsin as a hub for AI-powered economic activity, innovation, and job creation. The company also invested $1.5 billion in G42, a leading UAE-based AI technology holding company, to enhance the UAE's position as a global AI hub.
For Q3 2024 earnings Microsoft reported revenue of $61.9 billion marking an increase of 17% year over year. The surge in revenue could be attributed to Microsoft's suite of AI systems, which are provided through its cloud computing platform Azure.
In terms of guidance, Microsoft's finance chief, Amy Hood, has projected $64 billion in revenue for the fiscal fourth quarter. Hood's forecast indicates an operating margin of 42.3%.
For the fiscal fourth quarter, Microsoft anticipates Intelligent Cloud revenues, which include Azure, to be between $28.4 billion and $28.7 billion.
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Sources:
1. Investopedia
2. investing.com
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