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Azure Cloud Strength to Aid Microsoft (MSFT) in Q1 Earnings?
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Microsoft’s (MSFT - Free Report) first-quarter fiscal 2023 results, scheduled to be reported on Oct 25, are likely to be driven by the continued strength in its cloud platform — Azure. The platform has been benefiting from the pandemic-led digital transformation across the globe.
For the fiscal first quarter, Microsoft expects Intelligent Cloud revenues (Azure falls under the segment) between $20.3 billion and $20.6 billion. Azure’s revenue growth is likely to have been driven by continued strength in consumption-based services.
The Zacks Consensus Estimate for Intelligent Cloud revenues is currently pegged at $20.4 billion, indicating 20.3% growth from the figure reported in the year-ago quarter.
The increasing migration of workloads to the cloud is fueling demand for cloud infrastructure monitoring, web-based application performance management and human capital management solutions. This has been driving demand for Microsoft’s cloud service.
Microsoft’s Azure has a presence in more than 60 regions worldwide and is available in 140 countries. Azure’s increase is anticipated to have bolstered its cloud business and strengthened its competitive position against Amazon’s (AMZN - Free Report) Amazon Web Services (AWS) and Alphabet’s (GOOGL - Free Report) Google Cloud.
In the last reported quarter, Amazon’s AWS revenues (16% of total company sales) rose 33% year over year to $19.7 billion. The expansion of its AWS services portfolio is helping Amazon maintain its dominance in the cloud domain by gaining more customers.
In second-quarter 2022, Alphabet recorded a 35.6% year-over-year jump in Google Cloud revenues to $6.3 billion, which contributed 9% to its quarterly revenues.
Microsoft reported a 40% year-over-year increase in Azure and other cloud services revenues in fourth-quarter fiscal 2022. The upside was driven by robust growth in the consumption-based business.
Noteworthy Healthcare Moves
Microsoft has been taking initiatives to boost its presence in the healthcare space. The pandemic has driven the digital transformation of the healthcare system.
Microsoft Cloud for healthcare solutions has been helping healthcare providers enhance patient engagement and clinician experiences, empower health team collaboration and improve clinical and operational insights.
Key Q1 Announcements
On Aug 8, Microsoft announced that Unity Software (U - Free Report) selected Azure as its cloud partner for building and operating real-time 3D (RT3D) experiences from the Unity engine.
By giving creators easy access to RT3D simulation tools and the ability to create digital twins of real-world places and objects, Unity is offering creators an easy path to the production of RT3D assets, whether for games or non-gaming worlds.
The partnership between Microsoft and Unity will also enable Made with Unity game creators to easily reach their players across Windows and Xbox devices and unlock new success opportunities.
Microsoft currently carries a Zacks Rank #4 (Sell).
Image: Bigstock
Azure Cloud Strength to Aid Microsoft (MSFT) in Q1 Earnings?
Microsoft’s (MSFT - Free Report) first-quarter fiscal 2023 results, scheduled to be reported on Oct 25, are likely to be driven by the continued strength in its cloud platform — Azure. The platform has been benefiting from the pandemic-led digital transformation across the globe.
For the fiscal first quarter, Microsoft expects Intelligent Cloud revenues (Azure falls under the segment) between $20.3 billion and $20.6 billion. Azure’s revenue growth is likely to have been driven by continued strength in consumption-based services.
The Zacks Consensus Estimate for Intelligent Cloud revenues is currently pegged at $20.4 billion, indicating 20.3% growth from the figure reported in the year-ago quarter.
Microsoft Corporation Price and EPS Surprise
Microsoft Corporation price-eps-surprise | Microsoft Corporation Quote
Azure to Drive Top-Line Growth
The increasing migration of workloads to the cloud is fueling demand for cloud infrastructure monitoring, web-based application performance management and human capital management solutions. This has been driving demand for Microsoft’s cloud service.
Microsoft’s Azure has a presence in more than 60 regions worldwide and is available in 140 countries. Azure’s increase is anticipated to have bolstered its cloud business and strengthened its competitive position against Amazon’s (AMZN - Free Report) Amazon Web Services (AWS) and Alphabet’s (GOOGL - Free Report) Google Cloud.
In the last reported quarter, Amazon’s AWS revenues (16% of total company sales) rose 33% year over year to $19.7 billion. The expansion of its AWS services portfolio is helping Amazon maintain its dominance in the cloud domain by gaining more customers.
In second-quarter 2022, Alphabet recorded a 35.6% year-over-year jump in Google Cloud revenues to $6.3 billion, which contributed 9% to its quarterly revenues.
Microsoft reported a 40% year-over-year increase in Azure and other cloud services revenues in fourth-quarter fiscal 2022. The upside was driven by robust growth in the consumption-based business.
Noteworthy Healthcare Moves
Microsoft has been taking initiatives to boost its presence in the healthcare space. The pandemic has driven the digital transformation of the healthcare system.
Microsoft Cloud for healthcare solutions has been helping healthcare providers enhance patient engagement and clinician experiences, empower health team collaboration and improve clinical and operational insights.
Key Q1 Announcements
On Aug 8, Microsoft announced that Unity Software (U - Free Report) selected Azure as its cloud partner for building and operating real-time 3D (RT3D) experiences from the Unity engine.
By giving creators easy access to RT3D simulation tools and the ability to create digital twins of real-world places and objects, Unity is offering creators an easy path to the production of RT3D assets, whether for games or non-gaming worlds.
The partnership between Microsoft and Unity will also enable Made with Unity game creators to easily reach their players across Windows and Xbox devices and unlock new success opportunities.
Microsoft currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.