Cloud News
Wade Tyler Millward
Microsoft executives might talk about generative AI, security and overall tech spending on the earnings call Tuesday.
Along with updates on Microsoft’s expansion plans for generative artificial intelligence, security and other technology areas, the vendor’s next quarterly earnings report should add more insight into whether business spending has continued to take a hit from moderated demand since the height of the COVID-19 pandemic.
On Tuesday, Redmond, Wash.-based Microsoft will report earnings for the third quarter of its fiscal year, a quarter that ended March 31. The company has operated in a cloud “optimization cycle” in recent months, and analysts will look for any signs of customers increasing their spend on new projects.
[RELATED: IBM Q1 Results: Consulting Weakness, Software Strength And Investing In Enterprise AI]
Microsoft Q3 Earnings
A Bank of America report published Wednesday said to expect:
*About 30 percent growth in Azure
*Productivity and business processes segment to report $17.1 billion, up 12 percent year over year ignoring foreign exchange
*Office 365 subscription growth of 11 percent, down a point from the prior quarter
*Average selling price growth of 6 percent ignoring foreign exchange
*Revenue from Microsoft’s intelligent cloud segment of $21.9 billion, a 17 percent increase year over year ignoring foreign exchange
Here’s more of what to look for when Microsoft next reports earnings.
