Microsoft set to report earnings after the bell

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Satya Nadella, chief executive officer of Microsoft Corp., attends the Viva Tech start-up and technology gathering at Parc des Expositions Porte de Versailles on May 24, 2018, in Paris. The third edition of VivaTechnology brings together nearly 1,800 start-ups alongside the largest international groups.
Christophe Morin | IP3 | Getty Images

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.

This is breaking news. Please check back for updates.

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