Microsoft (MSFT) Q1 Earnings Preview: $4.73 EPS, $90.69B Revenue Expected

Microsoft (MSFT) will report its fiscal first quarter earnings after the market close on Wednesday. Analysts expect adjusted earnings of $4.73 per share and revenue of $90.69 billion. This quarter marks a change as Microsoft will report under two operating segments for the first time since 1998, consolidating from three segments that covered Azure, Office, and Windows.

Azure cloud revenue disclosure will start with an expected $32.32 billion, reflecting over 44% growth. Microsoft continues to focus on expanding its artificial intelligence infrastructure and product offerings while maintaining positive free cash flow. This contrasts with its cloud competitors Alphabet, Amazon, and Meta, which reported negative free cash flows in their recent quarters.

Microsoft announced plans to cut 4,800 jobs earlier in the quarter and is now offering buyouts to up to 60,000 employees to manage costs amid its AI investments. Capital expenditure and finance leases for the quarter are projected at $50.67 billion. The company also launched an AI implementation unit and a Copilot AI app with coding features. Executives will provide additional guidance in a conference call at 5:30 p.m. ET. This report matters to investors as it signals Microsoft’s financial health while navigating AI growth and workforce restructuring.