Microsoft CEO Satya Nadella speaks at an occasion commemorating the fiftieth anniversary of the corporate at Microsoft headquarters in Redmond, Washington, on April 4, 2025.
David Ryder
Microsoft is ready to report fiscal third-quarter outcomes after market shut on Wednesday.
This is what analysts are in search of, in line with a consensus from LSEG:
- Earnings per share: $3.22
- Income: $68.42 billion
The income projection implies annual progress of 10.6%, which might be the slowest fee in two years. The previous quarter shall be necessary, however traders shall be extra targeted on what Microsoft CEO Satya Nadella says about enterprise prospects for the remainder of the yr given President Donald Trump’s introduced plans earlier this month for sweeping new tariffs on high buying and selling companions.
Whereas most of Microsoft’s income comes from software program gross sales, the corporate purchases hefty quantities of apparatus to offer providers to shoppers. In April, two days after President Trump introduced levies on items imported to the U.S., former Microsoft CEO Steve Ballmer instructed CNBC that tariffs have been “not good.” Nadella mentioned that, “no matter are the geopolitical or financial shifts, we’ll modify to it.”
In January, Microsoft dedicated to $80 billion in capital spending for synthetic intelligence knowledge facilities within the present fiscal yr. CFO Amy Hood on the time referred to as for a slowdown in capital spending progress for the upcoming 2026 fiscal yr. Hood mentioned that fiscal second-quarter income from Azure cloud providers not tied to AI fell wanting inner projections.
Nadella instructed analysts on the decision that Microsoft was working to deal with the issue by adjusting gross sales incentives. Analysts at Financial institution of America and BMO have lowered their Azure progress estimates in latest weeks.
As of Tuesday’s shut, Microsoft shares have been down about 7% for the yr, whereas the S&P 500 index was down 5%.
Through the quarter, which ended on March 31, Microsoft introduced an adjustment to its relationship with key AI accomplice OpenAI. The corporate mentioned it could have a proper of first refusal when OpenAI desires new computing capability, however will not at all times must ship it. On the identical day, OpenAI introduced the Stargate AI infrastructure challenge alongside Oracle and SoftBank on the White Home.
Executives will concern steerage and talk about the outcomes on a name with analysts beginning at 5:30 p.m. ET.
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