Microsoft Earnings: AI Growth And Cloud Demand Are Front & Center

Core Viewpoint - Microsoft Inc. is set to report earnings, with expectations of a gain of $3.35 per share and revenue of $73.71 billion, while the Whisper number suggests a gain of $3.51 per share [4]. Financial Performance - Microsoft has shown consistent earnings growth over the years, with earnings per share increasing from $5.76 in 2020 to $11.80 in 2024, and projected to reach $13.42 in 2025 and $15.21 in 2026 [5]. - The current price-to-earnings ratio stands at 40, which is 1.7 times that of the S&P 500 [5]. Technical Analysis - The stock has recently reached a record high of just above $518 per share and is trading above its 50 and 200-day moving averages, indicating strong technical performance [6]. - Post-earnings, the market is anticipating a potential gap up if results are strong, or a gap down if results disappoint [6]. Business Segments - Microsoft operates through several segments, including Productivity and Business Processes, which offers services like Microsoft Teams and LinkedIn [7][8]. - The Intelligent Cloud segment provides cloud services such as Azure and enterprise solutions [8]. - The More Personal Computing segment includes Windows operating systems, Xbox gaming, and related services [9][10]. Sales Channels - The company sells its products through OEMs, distributors, resellers, and directly via digital marketplaces and retail stores [11].