Microsoft set to report quarterly results after the close

Published

1 year ago

October 30, 2024

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Microsoft CEO Satya Nadella takes part in the Partnership for Global Infrastructure and Investment Event during the G7 Summit at the Borgo Egnazia resort in Savelletri, Italy, on June 13, 2024.

Mandel Ngan | AFP | Getty Images

Microsoft will report results for its fiscal first quarter after the close of regular trading on Wednesday.

Here’s the LSEG consensus of analysts’ expectations:

Earnings per share: $3.10
Revenue: $64.51 billion

The revenue estimate implies 14% annual growth for the quarter, which ended Sept. 30.

In August, Microsoft said it would revise the reporting of business segments to reflect its management approach. Mobility and security services, along with some Windows revenue, will now be part of the Productivity and Business Processes unit, which includes Office software.

Analysts surveyed by StreetAccount are looking for $27.9 billion in revenue for the segment. That is 36% higher than the $20.45 billion midpoint of the forecast that management gave in July, because the analyst projection accounts for the changes.

Investors will receive a clearer picture of cloud consumption. Analysts expect $24.04 billion in revenue from the Intelligent Cloud segment that includes Azure cloud infrastructure. CNBC’s consensus for Azure growth is 32.8%, while StreetAccount’s is 29.4%.

In Alphabet’s earnings report on Tuesday, the internet company said its cloud business, which rivals Azure, grew nearly 35% from a year earlier to $11.35 billion, topping estimates. Amazon, which leads the cloud infrastructure market, is slated to report results after the close on Thursday.

For Microsoft’s More Personal Computing segment, the StreetAccount consensus is $12.56 billion. Microsoft will publish a combined growth rate for sales of devices and sales of Windows operating system licenses to device makers. Industry researcher Gartner estimated that quarterly PC shipments declined 1.3%.

During the quarter, Microsoft worked to help customers recover after a flawed update to CrowdStrike security software brought down Windows PCs globally. Microsoft said it would collaborate with BlackRock on an artificial intelligence infrastructure investment fund, with a goal of $30 billion in initial capital.

Microsoft’s AI investments will continue to be a major focus for investors, as the company builds out its infrastructure and ramps up chip spending to handle heftier workloads. Microsoft is the main investor in ChatGPT creator OpenAI, which was valued at $157 billion in a financing round earlier this month.

As of June 30, Microsoft had racked up more than $108 billion in finance leases that had not started, which UBS analysts have said might include third-party cloud spending to meet AI demand.

At the same time, Microsoft has been spending more cash on property and equipment. Analysts polled by Capital IQ anticipate $14.58 billion in spending for the fiscal first quarter, up 47% from the same period a year earlier.

As of Tuesday’s close, Microsoft was up about 15% for the year, while the Nasdaq gained around 25% during the same period.

Executives will discuss the results and issue guidance on a conference call with analysts starting at 5:30 p.m. ET.

Correction: A prior version of this story had an incorrect date for the end of the quarter. It was Sept. 30.

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Technology

Nvidia earnings, Target’s profit outlook, Meta’s antitrust victory and more in Morning Squawk

Published

4 hours ago

November 19, 2025

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Nvidia earnings, Target's profit outlook, Meta's antitrust victory and more in Morning Squawk

The Nvidia logo is displayed on a building at Nvidia headquarters on August 27, 2025 in Santa Clara, California.

Justin Sullivan | Getty Images News | Getty Images

This is CNBC’s Morning Squawk newsletter. Subscribe here to receive future editions in your inbox.

Here are five key things investors need to know to start the trading day:

1. AI wars

Wall Street may be losing some of its excitement for artificial intelligence, but the battle among major technology companies for dominance in the field hasn’t cooled. After the bell today, investor attention will zero in on just one event: Nvidia‘s earnings report.

Here’s the latest on Nvidia and the sector:

Nvidia has fallen more than 4% this week as investors await its third-quarter results. Shares are up more than 1% in premarket trading today.
Nvidia and Microsoft yesterday announced a partnership with AI startup Anthropic. A source told CNBC that with the investments, Anthropic’s valuation now stands at around $350 billion — up from $183 billion in September.
Microsoft also unveiled its own product that can automatically detect the use of AI agents developed by the tech company or some other tech firms.
Google, meanwhile, announced its upgraded Gemini 3 model as it attempts to keep up with OpenAI’s ChatGPT.
Intuit will pay OpenAI more than $100 million in a multiyear deal that will integrate ChatGPT in the company’s financial products, like TurboTax.
The decline in Nvidia and other AI names yesterday dragged down the broader market, with the S&P 500 logging its longest losing streak since August.
Follow live markets updates here.

2. Missed the bullseye

Target Corp. shopping baskets sit on the floor of a company store

Christopher Dilts | Bloomberg | Getty Images

Target posted third-quarter revenue that was slightly below Wall Street’s expectations this morning and cut the top end of its full-year profit outlook. Shares fell about 2% in premarket trading following the results.

Incoming CEO Michael Fiddelke said the retailer is focused on making investments and decisions that “get Target back to growth as quickly as possible.” But, as CNBC’s Melissa Repko notes, Fiddelke declined to say exactly when he thought the company would see positive sales again.

Lowe’s similarly lowered its full-year profit outlook before the bell. However, the home improvement retailer reported stronger-than-anticipated earnings per share for the third quarter, sending the stock up more than 6% in premarket trading.

3. Epstein files

A protester holds a placard after the House voted 427-1 to approve the Epstein Files Transparency Act and the release of documents and files at the U.S. Capitol on Nov. 18, 2025 in Washington, DC.

Roberto Schmidt | Getty Images

Both chambers of Congress yesterday passed a bill that would release the Justice Department’s files tied to sex offender Jeffrey Epstein. The measure now heads to the desk of President Donald Trump, who has said he would sign it into law.

Meanwhile, former Treasury Secretary Larry Summers said this morning that he is resigning from OpenAI’s board. Two days ago, Summers said that he would step back from public commitments following the release of his emails with Epstein.

4. WhatsApproved

Dado Ruvic | Reuters

Meta emerged victorious in its antirust case against the Federal Trade Commission yesterday. Judge James Boasberg said that the Facebook parent does not currently have a monopoly in social media, writing in his decision that TikTok and YouTube are “competitive threats.”

At the heart of the case was Meta’s acquisitions of Instagram and WhatsApp in 2012 and 2014, respectively. Regulators argued that the company should be forced to sever off the two brands.

The decision comes seven months after the trial began and five years since the FTC filed the suit. CEO Mark Zuckerberg, former operating chief Sheryl Sandberg and Instagram co-founder Kevin Systrom all testified in the trial.

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5. Online to IRL

People linger in the restaurant of the Netflix House experience center.

Andrej Sokolow | Picture Alliance | Getty Images

After years of dominating the streaming world, Netflix is now betting on toys and in-person experiences.

The company has started jumping on product partnerships and marketing that traditional media firms have utilized for decades. As CNBC’s Sarah Whitten reports, Netflix’s push comes as the streamer’s original content library gains enough popular programming — think “KPop Demon Hunters” and “Bridgerton” — to justify retail investments.

Netflix has inked agreements with Hasbro, Mattel and Jazwares on merchandise tied to its media properties. The California-based company has also launched short- and long-term event spaces, including the new Netflix House Philadelphia.

The Daily Dividend

Trump lashed out at ABC yesterday after a reporter with the Disney-owned company’s news division asked the president why he had not released the Epstein files.

I think the license should be taken away from ABC. Because your news is so fake and so wrong.

President Donald Trump

— CNBC’s Ashley Capoot, MacKenzie Sigalos, Sean Conlon, Jordan Novet, Melissa Repko, Jonathan Vanian, Sarah Whitten and Kevin Breuninger contributed to this report. Josephine Rozzelle edited this edition.

Technology

Larry Summers resigns from OpenAI board after release of emails with Epstein

Published

5 hours ago

November 19, 2025

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Larry Summers resigns from OpenAI board after release of emails with Epstein

Larry Summers, president emeritus and professor at Harvard University, at the World Economic Forum (WEF) in Davos, Switzerland, on Tuesday, Jan. 21, 2025.

Stefan Wermuth | Bloomberg | Getty Images

Former Treasury Secretary Larry Summers said Wednesday that he will resign from the board of OpenAI after the release of emails between him and the notorious sex offender Jeffrey Epstein.

Summers had announced Monday that he would be stepping back from all public commitments, but it was not immediately clear whether that included his position at the artificial intelligence startup.

“I am grateful for the opportunity to have served, excited about the potential of the company, and look forward to following their progress,” Summers said in a statement to CNBC.

OpenAI’s board told CNBC it respects Summers’ decision to resign.

“We appreciate his many contributions and the perspective he brought to the Board,” the OpenAI board of directors said in a statement.

Details of Summers’ correspondence with Epstein were made public last week after the House Oversight and Government Reform Committee released more than 20,000 documents it obtained pursuant to a subpoena from Epstein’s estate. Summers has faced intense scrutiny following the release of those files.

Summers joined OpenAI’s board in 2023 during a turbulent period for the startup. OpenAI CEO Sam Altman was briefly ousted from the company, though he returned to the chief executive role days later.

In the wake of “The Blip,” as some OpenAI employees call it, Summers was appointed to the board alongside Bret Taylor, former co-CEO of Salesforce, and Quora CEO Adam D’Angelo, who was the only member of OpenAI’s previous board who still held a seat.

Axios was first to report about Summers’ resignation from the board.