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Microsoft (MSFT) Might Release Three Windows 11 Updates in 2023

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Microsoft (MSFT - Free Report) is working on a slew of notable improvements for Windows 11 that are expected to arrive with different Moment updates in 2023. With Windows 11 version 22H2, Microsoft has kicked off a new engineering effort internally called Moments, which aims to deliver continuous innovation to Windows 11 users throughout the lifecycle of the product.

Reportedly, Microsoft is preparing as many as three updates for Windows 11 in the coming year. The Moment 2 update is expected to land in February or March, followed by an update in May and the last update is expected to arrive in the fall.

Instead of waiting for the annual Windows feature update in the fall, Microsoft is now planning to ship new features every few months in a series of feature drops, the first of which already shipped in October and included tabs in File Explorer.

Microsoft is set to deliver notable changes and updates to the Windows UI via these Moments and the second Moment update for Windows 11 is going to be a big one for users running Windows 11 on tablets.

In the first quarter fiscal 2023, Windows commercial products and cloud services revenues increased 8% year over year (up 15% at cc) on the back of higher customer adoption of Microsoft 365 offerings.

In the past year, shares of Microsoft have decreased 28.4% compared with the Zacks Computer-Software industry’s decline of 37.8%.

Expected Moment Windows 11 Updates in Store for 2023

The upcoming Moment 2 update is likely to bring a couple of enhancements to the Taskbar. These include updates to the System Tray overflow menu, a tablet-optimized taskbar experience and a full-screen widget panel. Microsoft is also expected to add a new Search experience in Task Manager, Voice Access updates and other minor improvements.

The new tablet-mode Taskbar brings over the minimized Taskbar interface that was first introduced on Windows 10X. When Windows detects a touchscreen and no keyboard or mouse, the Windows Taskbar will minimize to give the user extra space for their running apps. Users can swipe up on the Taskbar to access pinned and running apps with larger hitboxes to make using it with a finger easier.

Moreover, Microsoft is reportedly working on a Moment 3 update that is scheduled for release in May or June 2023. The company has yet to share details about the new features, but it is anticipated to include improvements for dual-screen devices and a better Windows Search interface. Microsoft may also ship the new web-based Outlook desktop client, which should replace the existing Mail and Calendar app in the near future.

Microsoft is working on delivering preliminary improvements for foldable PCs for both single-screen and dual-screen form factors. Microsoft is still planning to replace the Windows Mail & Calendar apps with the new Outlook web client.

Another big focus for these Moment updates throughout 2023 will be the continuation of updating legacy interfaces with modern designs that are consistent with the rest of Windows 11. Many older interfaces from the Windows 8 and Windows 7 days, such as the USB Autoplay interface, recovery and device rename dialogs, Windows Firewall popups and more are expected to finally be updated with new designs throughout 2023.

Overall, Microsoft had a quite busy year in 2022 and the company continues to experiment with more Windows 11 features through its Insider Program.

Zacks Rank & Stocks to Consider

Microsoft currently carries a Zacks Rank #4 (Sell). Here are some better-ranked stocks to consider in the broader tech sector.

Arista Networks (ANET - Free Report) sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

ANET’s shares have fallen 17.1% in the year-to-date period compared with the Zacks Communication – Components industry’s decline of 43.7%.

Axcelis Technologies (ACLS - Free Report) carries a Zacks Rank #2 (Buy) stock.

ACLS shares have gained 3.8% in the year-to-date period against the Zacks Electronics - Manufacturing Machinery industry’s decline of 43.7%.

Bumble (BMBL - Free Report) carries a Zacks Rank #2.

BMBL’s shares have slumped 41.3% in the year-to-date period compared with the Zacks Internet Software industry’s decline of 62%.

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