Microsoft Q1 revenue beats expectations on strong demand for cloud and AI services

Reuters
Oct 30
Microsoft Q1 revenue beats expectations on strong demand for cloud and AI services

Overview

  • Microsoft fiscal Q1 rev grows 18% yr/yr, beating analyst expectations, per LSEG data

  • GAAP EPS for fiscal Q1 beats analyst expectations, reflecting robust operational performance

  • Company's cloud and AI services drive strong growth in fiscal Q1

Outlook

  • Company will provide forward-looking guidance during earnings conference call and webcast

Result Drivers

  • CLOUD AND AI - Microsoft attributes Q1 growth to strong demand for its cloud and AI services, as noted by CEO Satya Nadella

  • INVESTMENTS IN AI - Co continues to increase investments in AI to meet future opportunities, per CEO Satya Nadella

  • CLOUD REVENUE - Microsoft Cloud revenue rose 26%, reflecting growing customer demand for its platform, per CFO Amy Hood

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q1 Revenue

Beat

$77.70 bln

$75.32 bln (35 Analysts)

Q1 Adjusted EPS

$4.13

Q1 EPS

Beat

$3.72

$3.66 (36 Analysts)

Q1 Net Income

$27.70 bln

Q1 Cloud Revenue

$49.10 bln

Q1 Intelligent Cloud Revenue

$30.90 bln

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 61 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the software peer group is "buy"

  • Wall Street's median 12-month price target for Microsoft Corp is $630.00, about 14% above its October 28 closing price of $542.07

  • The stock recently traded at 33 times the next 12-month earnings vs. a P/E of 33 three months ago

Press Release: ID:nPn3zvGrsa

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10