Microsoft beats Wall Street estimates for the quarter but gives soft guidance


Microsoft ( delivered $2.93 EPS on a revenue of $62.02 billion for the quarter ended 31 December 2023. This is ahead of Wall Street estimates of $2.77 EPS and $61.1 billion. In effect, the company's earnings increased 33% on a year-over year basis and sales increased by 18%.

Amy Hood, Microsoft's CFO, said that "Strong execution by our sales teams and partners drove Microsoft Cloud revenue to $33.7 billion, up 24% year over year."

CEO Satya Nadella was positive about the company's AI integration. Nadella said that "We've moved from talking about AI to applying AI at scale." and "By infusing AI across every layer of our tech stack, we're winning new customers and helping drive new benefits and productivity gains across every sector."

The top performer for the quarter was Microsoft's Intelligent Cloud business unit. Revenue here jumped by 20% to $25.9 billion. Azure cloud infrastructure was a standout performer with sales increasing by 30% year-on-year.

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The Productivity and Business Process unit's revenue was up 13% to $19.2 billion, and the Personal Computing unit's sales increased by 19% to $16.9 billion.

Microsoft forecasts revenue between $60 billion and $61 billion for the current quarter. However, the median, $60.5 billion is below Wall Street estimates of $61 billion.


On a technical basis, is overbought with its RSI above 80 (green rectangle). This suggests a pullback may be due in the short-term as the oscillator normalises. However, given the strong primary uptrend, any short-term pullback may be an opportunity for the bulls to enter at a lower price.

Image by Gerd Altmann from Pixabay

Russell Shor

Senior Market Specialist

Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.

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