Microsoft Q1 results beats estimates driven by Azure growth

Microsoft

Wed 20:09

Overview
US technology giant's fiscal Q1 revenue rose 19%, beating analyst expectations
Adjusted EPS for fiscal Q1 beat consensus
Company attributed results to strong cloud growth, with Microsoft Cloud revenue up 30%

Outlook
Microsoft will provide forward-looking guidance on its earnings call and webcast

Result Drivers
CLOUD REVENUE - Microsoft said cloud revenue rose 30% in Q1, with growth accelerating year-over-year
AZURE GROWTH - Azure revenue increased 48% in Q1, contributing to overall cloud segment growth
DEVICES WEAKNESS - Devices and Consumer segment revenue fell 3%, with Windows OEM and Devices revenue down 22%

Company press release: Full Story

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$92.30 bln
$90.69 bln (35 Analysts)
Q1 Adjusted EPS
Beat
$4.89
$4.73 (35 Analysts)
Q1 EPS
 
$4.92
 
Q1 Net Income
 
$36.60 bln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 57 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for Microsoft Corporation is $600.00, about 12.9% above its October 27 closing price of $531.33
The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 19 three months ago

Reuters Recommended Reads
Oct 27 - Apple launches M6 MacBook Pro and iMac, pitches faster on-device AI
Oct 28 - OpenAI plans to buy Google's AI chips, The Information reports
Oct 27 - F5 Q4 revenue beats estimates on systems strength

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)