Microsoft (MSFT) Earnings Q2 2023

Microsoft CEO Satya Nadella speaks at the company’s Ignite Spotlight event in Seoul on November 15, 2022. Nadella delivered the keynote address at an event organized by the company’s Korean unit.

Seongjoon Cho | Bloomberg | Getty Images

Microsoft After the close of regular trading on Tuesday, Fiscal will present second quarter results.

Here’s what analysts expect:

  • Earning: $2.30 per share, adjusted, according to Refinitiv.
  • Revenue: $52.96 billion according to Refinitiv.

Sales growth is expected to be just 2.3% year over year, which would be the weakest expansion for Microsoft in any period since 2016.

The company faces concerns across the board. when the ceo Satya Nadella announced 10,000 jobs Cuts Last week, he said customers in every industry around the world had taken a more cautious approach because of recession concerns.

As of Monday’s close, Microsoft shares were down 18% over the past year, slightly underperforming the Nasdaq.

The growth engine of Microsoft’s Intelligent Cloud unit is Azure Public Cloud. In October, executives said the company’s engineers were busy helping customers be more efficient with their Azure infrastructure services. Last week Nadella wrote that “we are now seeing them optimize their digital spend to do more with less.”

Microsoft’s Windows business, housed inside the Greater Personal Computing unit, is resonating with a pullback in the PC market. technology industry researcher Gartner estimated That the fourth quarter of 2022 was the slowest growth of the PC business since the company began tracking the market in the mid-1990s.

The third unit, Productivity and Business Processes, covers the Microsoft 365 productivity suite formerly known as Office. Some analysts have said in recent days that they expect slower growth in seats bought by business customers.

The decision to reduce headcount “shows a commitment to margin defense despite top-line volatility,” analysts at Raymond James wrote in a note to clients on Monday. They recommend buying Microsoft shares.

Microsoft said the layoffs, along with hardware lineup changes and lease consolidation charges, would negatively impact earnings of a $1.2 billion charge and 12 cents per share.

watch: For a long time, Microsoft has a largely secular growth story, says Oppenheimer’s Horan

For a long time, Microsoft has a largely secular growth story, says Oppenheimer's Horan

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