Microsoft Projected to Maintain Earnings Momentum
Earnings releases in the US will be headlined by big tech hyperscalers, including Microsoft’s fourth-quarter earnings release next week.
Microsoft entered this quarter with strong momentum, underpinned by accelerating Azure growth, robust enterprise AI adoption, expanding Copilot deployments and continued capacity additions across its cloud infrastructure.
Investor focus will be on whether Azure can sustain management’s guided constant-currency growth of between 39% and 40%, the pace at which M365 Copilot adoption converts into meaningful revenue, and the impact of elevated AI-related capital expenditure on margins and free cash flow.
Management guided for revenue of between $86.7 billion and $87.8 billion (Bloomberg: $87.7 billion), Intelligent Cloud growth of between 27% and 28%, and quarterly capex above $40 billion.
Management also expects to remain constrained in capacity at least through 2026, despite additional investments and efforts to bring GPU, CPU, and storage capacity online faster. #Microsoft Projected to Maintain Earnings Momentum# Microsoft Takes Action Against Potential Cyber Threats, Restricts Chinese Access
