Microsoft's Q4 Earnings Report Sparks Stock Surge and Market Optimism

What's Going On With Microsoft Stock Wednesday? - Microsoft (NASDAQ:MSFT)

Multiple analysts adjust price targets on the stock following the print. Microsoft Corp MSFT shares are trading lower Wednesday on the heels of the company's fourth-quarter financial results. Here's what you need to know. What To Know: Microsoft reported fourth-quarter revenue of $64.7 billion, beating estimates of $64.36 billion, according to Benzinga Pro. The company reported earnings of $2.95 per share, beating estimates of $2.92 per share. Total revenues were up 15% on a year-over-year basis, Intelligent Cloud revenue came in at $28.5 billion, up 19% year-over-year and Azure and other cloud services revenue increased 29% year-over-year. Some of the selling pressure in Microsoft shares appears to be due to the Azure number, which was expected to come in around 30%. "Our strong performance this fiscal year speaks both to our innovation and to the trust customers continue to place in Microsoft," said Satya Nadella, chairman and CEO of Microsoft. "As a platform company, we are focused on meeting the mission-critical needs of our customers across our at-scale platforms today, while also ensuring we lead the AI era." Outlook: Microsoft sees first-quarter Intelligent Cloud revenue in the range of $28.6 billion to $28.9 billion. The company expects first-quarter productivity and business revenue of $20.3 billion to $20.6 billion. Productivity and business revenue came in at $20.3 billion in the fourth quarter. Microsoft sees Personal Computing revenue in the range of $14.9 billion to $15.3 billion. See Also: Satya Nadella Says Microsoft's Copilot Drives 40% Of GitHub's Revenue Growth: We Are Also 'Enabling Anyone To Use Natural Language To Create Apps...' Analyst Changes: Piper Sandler analyst Brent Bracelin maintained Microsoft with an Overweight and price target of $485. Citigroup analyst Tyler Radke maintained Microsoft with a Buy and lowered the price target from $520 to $500. Wells Fargo analyst Michael Turrin maintained Microsoft with an Overweight and raised the price target from $500 to $515. MSFT Price Action: Microsoft shares initially traded sharply lower when the company released its quarterly results. The stock has been bouncing back since. Microsoft shares were down 1.57% at $416.30 at the time of publication, according to Benzinga Pro. Photo: Volodymyr Kyrylyuk/Shutterstock. Market News and Data brought to you by Benzinga APIs

What's Going On With Microsoft Stock Tuesday? - Microsoft (NASDAQ:MSFT)

Analysts are looking for earnings of $2.93 per share and revenue of $64.357 billion. Microsoft Corp MSFT shares are in the spotlight Tuesday ahead of earnings after the bell. Here's what you need to know before the print. What To Know: Microsoft is due to report fourth-quarter financial results after the market close on Tuesday. Analysts are looking for earnings of $2.93 per share and revenue of $64.357 billion, according to estimates from Benzinga Pro. Last quarter, Microsoft beat analyst estimates on the top and bottom lines as revenue jumped 17% year-over-year driven by strong sales execution. "Microsoft Copilot and Copilot stack are orchestrating a new era of AI transformation, driving better business outcomes across every role and industry," Microsoft chairman and CEO Satya Nadella said at the time. Microsoft has topped analyst estimates for earnings and revenue in five consecutive quarters heading into Tuesday's print. See Also: How To Earn $500 A Month From Microsoft Stock Ahead Of Q4 Earnings Wedbush analyst Dan Ives will be looking to get a reading on the pace of AI adoption when Microsoft reports after the bell. The Wedbush analyst said in a recent note that channel checks pointed to a potentially "robust" quarter for Microsoft, as the company is in "the driver's seat" of the AI revolution. Ives maintained an Outperform rating and price target of $550 ahead of earnings. Here's a look at other recent analyst changes leading up to earnings: BMO Capital analyst Keith Bachman maintained Microsoft with an Outperform and raised the price target from $465 to $500. Piper Sandler analyst Brent Bracelin reiterated Microsoft with an Overweight and raised the price target from $465 to $485. Mizuho analyst Gregg Moskowitz maintained Microsoft with an Outperform and raised the price target from $450 to $480. BofA Securities analyst Brad Sills maintained Microsoft with a Buy and raised the price target from $480 to $510. TD Cowen analyst Derrick Wood maintained Microsoft with a Buy and raised the price target from $470 to $495. MSFT Price Action: Microsoft shares were down 0.36% at $425.18 at the time of publication Tuesday morning, according to Benzinga Pro. Read Next: Fintech Giant PayPal's Q2 Earnings: Revenue And EPS Beat, Payment Volumes And Transactions Surge, Guidance Boost Photo: courtesy of Microsoft. Market News and Data brought to you by Benzinga APIs

Microsoft set to report earnings after the bell

Microsoft CEO Satya Nadella speaks during the company's Build developer conference in Seattle on May 21, 2024. Microsoft is scheduled to report fiscal fourth-quarter earnings after U.S. market close on Tuesday. Here's what analysts polled by LSEG are looking for: Microsoft is expected to show revenue growth of about 15% from $56.2 billion a year earlier, following expansion of 17% in the prior quarter. Google parent Alphabet reported last week that growth slowed in the quarter as YouTube ad revenue came up short of expectations. Microsoft is likely to find its strongest growth in cloud computing. Analysts surveyed by CNBC and StreetAccount expect revenue growth of 30% from Azure and other cloud services, a slight decline from 31% in the previous quarter. Microsoft doesn't disclose Azure revenue in dollars. Analysts at Evercore ISI, who have a buy rating on Microsoft shares, wrote in a note last week that they expect 7.8 points of Azure's growth to come from artificial intelligence services, up from 7 points in the fiscal third quarter. An improvement in the PC market might provide some relief to the Windows operating system business, which contracted last year after a Covid-era computer buying spree. Technology industry researcher Gartner estimated that PC shipments grew 1.9% in the fiscal fourth quarter, up from 0.9% growth in the prior period. During the fiscal fourth quarter, Microsoft started selling Surface PCs with AI features that can run certain models locally without the need for an internet connection. Dell, HP and other device makers also touted their own so-called Copilot+ PCs. CEO Satya Nadella said at a press briefing in May that "we're bringing real joy and a sense of wonder back to creation on the PC." Microsoft shares have gained about 14% year to date, slightly underperforming the S&P 500 index, which is up about 15%. Executives will discuss the results and issue guidance on a conference call with analysts starting at 5:30 p.m. ET.