Microsoft beats revenue estimates in Q1, expects growth in Q2, with strong performance from Azure and Microsoft 365

From Nasdaq: 2024-11-29 11:31:56

Microsoft reported strong first-quarter fiscal 2025 earnings, with revenues of $65.58 billion beating estimates by 1.82%. Commercial business saw growth in long-term commitments to the Microsoft Cloud platform, with commercial bookings up 30%. Azure and Microsoft 365 showed significant growth, with commercial remaining performance obligation increasing by 22%. Microsoft’s AI infrastructure and Azure services continue to drive revenue growth.

In the second quarter, Microsoft expects revenue growth in the productivity and business processes segment, with Office 365 Commercial revenue growth at 14%. Azure revenue is expected to grow between 31% and 32%. More Personal Computing revenue is projected to be between $13.85 billion and $14.25 billion, with a decline expected in Gaming revenues. Xbox content and services revenues are expected to remain relatively flat year over year.

Estimates for Microsoft stock have been trending downward, with a Zacks Rank of #3 (Hold). The company has a VGM Score of C, with strong Growth and weak Momentum scores. Investors should expect an in-line return from the stock in the coming months. Microsoft continues to innovate in AI and cloud services, positioning itself for future growth opportunities in the technology sector.



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