{"id":1375436,"date":"2024-04-25T15:09:15","date_gmt":"2024-04-25T12:09:15","guid":{"rendered":"https:\/\/windowsreport.com\/?p=1375436"},"modified":"2024-04-25T15:09:17","modified_gmt":"2024-04-25T12:09:17","slug":"microsoft-q3-earnings-preview","status":"publish","type":"post","link":"https:\/\/windowsreport.com\/microsoft-q3-earnings-preview\/","title":{"rendered":"Previewing Microsoft&#8217;s Q3 earnings: OpenAI boosts its technology aspirations"},"content":{"rendered":"\n<p>Investors and stakeholders eagerly await Microsoft&#8217;s financial performance report as time approaches. The Redmond tech giant is set to unveil its third quarter (Q3) earnings on Friday, 26 April, at 6:05 a.m. AEST (GMT +10) after the market closes.<\/p>\n\n\n\n<p>According to the latest Microsoft reports, cloud services remain the company&#8217;s most profitable segment, propelling Intelligent Cloud revenue to an impressive $25.88 billion in Q2, with a substantial 20% year-over-year increase.<\/p>\n\n\n\n<p>They contribute to more than 40% of the group&#8217;s total revenue, and this positive trajectory is expected to continue in Q3 as well, with projected revenue of $26\u2013$26.3 billion.<\/p>\n\n\n\n<p>Revenue is anticipated at $60.86 billion in the current quarter, which is lower than the previous quarter&#8217;s $61.13 billion.<\/p>\n\n\n\n<p>However, the EPS (Earnings per share) is estimated to grow to $2.84, which is higher than last quarter&#8217;s $2.77.<\/p>\n\n\n\n<p>If we talk about Year-over-year performance, the anticipation of the revenue growth (year-over-year)is expected to be 19%, which is lower than the\u00a0EPS growth (year-over-year), i.e., 27%.<\/p>\n\n\n\n<p><strong>Fiscal outlook<\/strong><\/p>\n\n\n\n<p>Microsoft is expecting modest yet strategic growth in fiscal year 2024&#8217;s third quarter. If we talk about all operational segments, there is a projected increase of less than 1 percent point without significant changes to the current cost structure.<\/p>\n\n\n\n<p>The aim of this strategy is to maintain stable operational expenses and the cost of goods sold (COGS)<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><a href=\"https:\/\/windowsreport.com\/wp-content\/uploads\/2024\/04\/original-size.png\"><img decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/windowsreport.com\/wp-content\/uploads\/2024\/04\/original-size-1024x576.png\" alt=\"\" class=\"wp-image-1375456\" srcset=\"https:\/\/windowsreport.com\/wp-content\/uploads\/2024\/04\/original-size-1024x576.png 1024w, https:\/\/windowsreport.com\/wp-content\/uploads\/2024\/04\/original-size-300x169.png 300w, https:\/\/windowsreport.com\/wp-content\/uploads\/2024\/04\/original-size-768x432.png 768w, https:\/\/windowsreport.com\/wp-content\/uploads\/2024\/04\/original-size-1536x865.png 1536w, https:\/\/windowsreport.com\/wp-content\/uploads\/2024\/04\/original-size-700x394.png 700w, https:\/\/windowsreport.com\/wp-content\/uploads\/2024\/04\/original-size-391x220.png 391w, https:\/\/windowsreport.com\/wp-content\/uploads\/2024\/04\/original-size.png 1922w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure><\/div>\n\n\n<p>The detailed financial projections are as follows: <\/p>\n\n\n\n<ul>\n<li>Revenue &#8211; Anticipated to be between $19.3 billion and $19.6 billion.<\/li>\n\n\n\n<li>Cost of Goods Sold (COGS) &#8211; Estimated to range from $18.6 billion to $18.8 billion. This also includes $0.7 billion attributed to amortization expenses related to acquiring intangible assets from Activision.<\/li>\n\n\n\n<li>Operating expenses &#8211; Expected to be approximately\u00a0$15.8 billion to $15.9 billion. This includes costs related to purchase accounting adjustments, which are around $0.3 billion, and expenses from integrating and transacting with Activision.<\/li>\n<\/ul>\n\n\n\n<p><strong>Impact of Microsoft and OpenAI&#8217;s partnership<\/strong><\/p>\n\n\n\n<p>From the introduction of Copilot to the integration of the AI assistant into existing Microsoft products, the whole world is witnessing AI advancements by the tech giant. <\/p>\n\n\n\n<p>With its substantial\u00a0investment in OpenAI, Microsoft has strategically shifted towards integrating AI capabilities throughout its technological ecosystem.<\/p>\n\n\n\n<p>As ChatGPT is gaining more traction, investors are optimistic about Microsoft&#8217;s future and ready to witness the further integration of AI and forthcoming strategic initiatives, given the company&#8217;s leverage in the AI domain.<\/p>\n\n\n\n<p>Despite all the AI hype and revenue boost, other segments, like its devices and Office commercial products, saw declines of 9% and 17%, respectively, in the last quarter, and the weakened PC market is to blame. <\/p>\n\n\n\n<p>However,  as the <a href=\"https:\/\/windowsreport.com\/pc-shipments-surge-back-to-pre-pandemic-levels-in-q1-2024\/\" target=\"_blank\" rel=\"noreferrer noopener\">PC shipments are surging back to pre-pandemic levels<\/a>, you might see a bit of an increase in this quarter or the next one.<\/p>\n\n\n\n<p><strong>Microsoft&#8217;s shares<\/strong><\/p>\n\n\n\n<p>Due to prevailing risk-averse sentiment, Microsoft&#8217;s shares have encountered a setback since the start of Q2. This, in turn, has interrupted the upward trajectory that saw the company&#8217;s stock prices surge to 38% from October 23 to March 2024.<\/p>\n\n\n\n<p>At the time of writing, Microsoft&#8217;s share price is between $<strong>406.78 and $412.47<\/strong>, which is low compared to its all-time high of $427.<\/p>\n\n\n\n<p>To conclude, as Microsoft is preparing to reveal its third-quarter earnings in the middle of\u00a0challenges and opportunities, the company&#8217;s trajectory remains under scrutiny.<\/p>\n\n\n\n<p>What do you expect from Microsoft&#8217;s financial performance report for Q3? Share your thoughts with our readers in the comments section below.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Investors and stakeholders eagerly await Microsoft&#8217;s financial performance report as time approaches. The Redmond tech giant is set to unveil its third quarter (Q3) earnings on Friday, 26 April, at 6:05 a.m. AEST (GMT +10) after the market closes. According to the latest Microsoft reports, cloud services remain the company&#8217;s most profitable segment, propelling Intelligent [&hellip;]<\/p>\n","protected":false},"author":2253,"featured_media":1375544,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_enabled_clarity":"","ep_exclude_from_search":false,"footnotes":""},"categories":[4],"tags":[7],"work":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v14.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Previewing Microsoft&#039;s Q3 earnings: OpenAI boosts its technology aspirations<\/title>\n<meta name=\"description\" content=\"Microsoft is set to unveil its third quarter (Q3) earnings on Friday, 26 April, at 6:05 a.m. AEST (GMT +10) after the market closes.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/windowsreport.com\/microsoft-q3-earnings-preview\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Previewing Microsoft&#039;s Q3 earnings: OpenAI boosts its technology aspirations\" \/>\n<meta property=\"og:description\" content=\"Microsoft is set to unveil its third quarter (Q3) earnings on Friday, 26 April, at 6:05 a.m. AEST (GMT +10) after the market closes.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/windowsreport.com\/microsoft-q3-earnings-preview\/\" \/>\n<meta property=\"og:site_name\" content=\"Windows Report\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/WindowsReport\" \/>\n<meta property=\"article:published_time\" content=\"2024-04-25T12:09:15+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-04-25T12:09:17+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/windowsreport.com\/wp-content\/uploads\/2024\/04\/Revenue-Microsoft-1.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1920\" \/>\n\t<meta property=\"og:image:height\" content=\"1280\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@SrishtiSisodia\" \/>\n<meta name=\"twitter:site\" content=\"@WindowsRep\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Organization\",\"@id\":\"https:\/\/windowsreport.com\/#organization\",\"name\":\"WindowsReport\",\"url\":\"https:\/\/windowsreport.com\/\",\"sameAs\":[\"https:\/\/www.facebook.com\/WindowsReport\",\"https:\/\/www.instagram.com\/Windows.Report\/\",\"https:\/\/www.linkedin.com\/company\/windowsreport\/\",\"https:\/\/www.youtube.com\/channel\/UCvAaplMymP1PcGkp26qUXlA\",\"https:\/\/pinterest.com\/Windows_Report\/\",\"https:\/\/twitter.com\/WindowsRep\"],\"logo\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/windowsreport.com\/#logo\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/windowsreport.com\/wp-content\/uploads\/2020\/05\/windowsreport-logo-quantcast.png\",\"width\":170,\"height\":28,\"caption\":\"WindowsReport\"},\"image\":{\"@id\":\"https:\/\/windowsreport.com\/#logo\"}},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/windowsreport.com\/#website\",\"url\":\"https:\/\/windowsreport.com\/\",\"name\":\"Windows Report\",\"description\":\"Time-saving software and hardware expertise that helped 500MM+ PC users. 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