Technology
Wednesday, October 25th, 2023 2:00 pm EDT
Key Points
- Microsoft’s fiscal first-quarter earnings report received high praise from Wall Street analysts, both in terms of earnings and the performance of specific segments, including the Azure cloud unit and the highly anticipated rollout of Microsoft’s AI product, Copilot.
- Microsoft’s stock saw a significant increase of around 4% in Wednesday morning trading following the release of the earnings report. The company exceeded expectations by reporting earnings per share of $2.99, surpassing the consensus estimate of $2.65. Microsoft also outperformed revenue expectations, reporting $56.52 billion for the quarter, compared to an estimated $54.50 billion.
- Analysts noted strong revenue growth and consistent execution in Microsoft’s performance. Deutsche Bank analyst Brad Zelnick raised his price target for Microsoft’s stock from $380 to $395, highlighting the company’s operating discipline and its comprehensive approach to delivering AI solutions. The imminent launch of Microsoft’s 365 Copilot artificial intelligence service was also noted as one of the most anticipated new products in the software industry. Additionally, Microsoft’s Azure cloud unit showed robust growth, with a 29% increase in revenue during the quarter, contributing to the company’s success. Comments from Microsoft executives during the earnings call further bolstered analyst confidence in the company’s performance.
Wall Street analysts are lauding Microsoft’s fiscal first-quarter earnings report for its impressive performance. Microsoft shares surged approximately 4% in Wednesday morning trading following the report.
Microsoft exceeded expectations with earnings per share of $2.99, surpassing the consensus estimate of $2.65. The company also outperformed revenue expectations, reporting $56.52 billion for the quarter compared to an estimated $54.50 billion.
Analysts are highlighting strong revenue growth and consistent execution. Deutsche Bank analyst Brad Zelnick expressed his optimism, raising his price target from $380 to $395 and commending Microsoft’s operating discipline and its approach to delivering AI solutions. He emphasized that Microsoft’s performance exceeded expectations on multiple fronts.
One of the key highlights was the upcoming full launch of Microsoft’s AI product, Copilot, which analysts anticipate eagerly. Barclays analyst Raimo Lenschow described Microsoft’s first-quarter results as “as good as it can get” and noted that the growth of Azure in the second half of the year would be a central point of discussion. Microsoft’s Azure cloud unit reported strong revenue growth, with a 29% increase during the quarter, contributing significantly to the company’s success.
Microsoft executives’ positive comments during the earnings call, including CFO Amy Hood’s confidence in their execution, market share, and consistent trends, further contributed to the positive sentiment among analysts.
For the full original article on CNBC, please click here: https://www.cnbc.com/2023/10/25/microsoft-stock-up-as-wall-street-heralds-strong-earnings-report.html
