With Microsoft standing alone above the $3 trillion market-cap level (after AAPL's recent weakness), all eyes are on tonight's earnings for any signs of an inflection in the AI-exuberance.
Source: Bloomberg
And sure enough, at the headline level at least, it's all-good with MSFT beating top- and bottom-line (by a big margin)...
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Revenue $62.02 billion, +18% y/y, estimate $61.14 billion
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EPS $2.93 vs. $2.20 y/y, estimate $2.78
Under the hood, all segments beat expectations:
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More Personal Computing revenue $16.89 billion, estimate $16.8 billion
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Productivity and Business Processes revenue $19.25 billion, estimate $19.03 billion
...with the heavily AI-exposed intelligent cloud unit once again the highlight:
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Microsoft Cloud revenue $33.7 billion, estimate $32.21 billion
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Intelligent Cloud revenue $25.88 billion, estimate $25.29 billion
Intelligent Cloud revenue growth was flat (in constanr currency)at 18% YoY...
The flagship Azure (cloud computing product) growth continued to re-accelerate to 30% YoY (but was flat on a constant currency basis)...
Satya seems pleased, and so he should with operating income up 33% YoY at $27.03 billion:
"We’ve moved from talking about AI to applying AI at scale," said Satya Nadella, chairman and chief executive officer of Microsoft.
"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.”
But, MSFT shares dumped initially than rebounded back to unchanged from the close (down on the day)...
...is it all priced in?