Microsoft is set to report its earnings for the June quarter, with a focus on its core business, Azure. The tech giant is expected to announce continued growth, despite a slowdown in the annual pace compared to previous quarters. Analysts predict revenue of $64.4 billion and earnings per share of $2.93.
The company’s AI-powered cloud business, Azure, remains a key segment for investors, with a projected growth rate ranging between 30% and 31% for the quarter. Cloud revenue is forecasted at $36.8 billion, potentially contributing 57% of Microsoft’s overall revenue. However, this growth rate shows a slight slowdown compared to the previous quarter.
Microsoft’s AI development, including the AI-powered code completion tool GitHub Copilot, has been a significant area of focus. The company has gained market share from competitors like Amazon Web Services and Google Cloud, with approximately 60% of Fortune 500 companies using Copilot.
Investors will also be looking at Microsoft’s capital expenditure, which the company has been heavily investing in to build its AI infrastructure and secure orders from Nvidia. CFO Amy Hood noted that capital expenditure is expected to increase “materially” in the June quarter to support cloud and AI infrastructure.
Overall, Microsoft’s upcoming earnings report is anticipated to show continued growth in its core business, Azure, and AI development. The company’s focus on cloud and AI technology remains a key driver of its success in the tech industry.
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