Microsoft will announce its fiscal third-quarter results after market close on Tuesday.
Here's what analysts are expecting:
- Earnings: $1.78 per share, adjusted, as expected by analysts, according to Refinitiv
- Revenue: $41.03 billion as expected by analysts, according to Refinitiv
The revenue estimate implies growth of 17% on a year-over-year basis, which would mark the biggest quarterly increase the company has posted since 2018, thanks in part to gains in PC sales resulting from coronavirus-driven shortages last year.
Analysts expect Microsoft's Azure cloud to show 46% revenue growth in the quarter, according to a CNBC review of 14 equity research notes. That would be down from 50% in the prior quarter. Microsoft does not disclose Azure revenue in dollars.
Microsoft said in the quarter it had won a U.S. Army contract worth up to $21.9 billion over a decade for augmented reality headsets based on its latest HoloLens device. The company also issued patches to address vulnerabilities in its Exchange Server on-premises email and calendar software that Chinese hackers exploited. It also closed the $7.5 billion acquisition of video game maker ZeniMax Media.
With respect to guidance, analysts polled by Refinitiv expect $42.98 billion in revenue for the fiscal fourth quarter, which would imply annualized revenue growth of 13%.
Microsoft shares are up 17% year to date, compared with a gain of about 11% for the S&P 500 over the same time period.
Executives will discuss the results with analysts and issue guidance on a conference call starting at 5:30 p.m. ET.
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