When is Microsoft’s (MSFT) Next Earnings Report? A Deep Dive

Microsoft, a tech titan synonymous with innovation and ubiquity, operates on a fiscal calendar that ends in June. Therefore, Microsoft’s (MSFT) next earnings report will be released in late October 2024, covering the first quarter of its fiscal year 2025. The exact date and time are announced approximately 3-4 weeks in advance on Microsoft’s Investor Relations website.

Understanding Microsoft’s Earnings Reports: A Guide for Investors

Earnings reports are critical pieces of information for anyone interested in the financial health and future prospects of a publicly traded company like Microsoft. They provide a snapshot of the company’s performance over a specific period, typically a quarter (three months). Understanding what to look for in these reports can significantly enhance your investment decisions.

Key Components of Microsoft’s Earnings Report

Microsoft’s earnings report, like those of other major corporations, contains several key components:

• Revenue: This is the total income generated from sales of products and services. Revenue growth is a primary indicator of the company’s success in expanding its market share and attracting new customers.
• Earnings per Share (EPS): EPS is calculated by dividing the company’s net income by the number of outstanding shares. It’s a widely used metric for assessing profitability on a per-share basis. Investors often focus on both GAAP EPS (Generally Accepted Accounting Principles) and Non-GAAP EPS (excluding certain one-time items).
• Net Income: This represents the company’s profit after all expenses, including taxes and interest, are deducted. Net income is a fundamental measure of overall profitability.
• Guidance: Microsoft provides guidance for future revenue and EPS in the upcoming quarter and sometimes for the full fiscal year. This forward-looking information is closely watched by investors as it reflects management’s expectations for the company’s performance.
• Segment Performance: Microsoft breaks down its revenue and operating income by segments, such as Productivity and Business Processes (Office, LinkedIn, Dynamics 365), Intelligent Cloud (Azure, server products), and More Personal Computing (Windows, devices, gaming, search advertising). Analyzing these segment results helps investors understand which parts of the business are driving growth.
• Conference Call: Following the release of the earnings report, Microsoft’s management team holds a conference call with analysts and investors. During this call, they discuss the results, answer questions, and provide further insights into the company’s strategy. This call can be a valuable source of information beyond the numbers themselves.

Where to Find Microsoft’s Earnings Reports

The most reliable source for Microsoft’s earnings reports is the Investor Relations section of their official website (microsoft.com/investor). You can also find summaries and analyses on reputable financial news websites like the Wall Street Journal, Bloomberg, Reuters, and CNBC. Always verify information from third-party sources against the official Microsoft release.

12 Frequently Asked Questions (FAQs) about Microsoft’s Earnings

Here are some frequently asked questions that can help you further understand Microsoft’s earnings and how to interpret them:

1. What is Microsoft’s fiscal year end? Microsoft’s fiscal year ends on June 30th. This means their Q1 earnings report, typically released in late October, covers the period from July to September.

2. How can I access the live webcast of the earnings conference call? The link to the live webcast is usually posted on Microsoft’s Investor Relations website a few days before the call. You can also find it on major financial news sites.

3. What is “whisper number” and should I pay attention to it? The “whisper number” is an unofficial earnings estimate circulated among traders and analysts. While it can sometimes influence short-term market reactions, it’s best to focus on the official company guidance and your own fundamental analysis. Relying solely on whisper numbers can be risky.

4. Why do Microsoft’s stock price move after earnings are released? Stock prices move based on whether the reported earnings and guidance meet, beat, or miss analysts’ expectations. Other factors, such as the overall market sentiment and the company’s future outlook presented during the conference call, can also play a role.

5. What are the key metrics to watch for in Microsoft’s earnings report? Besides revenue and EPS, pay close attention to the growth rate of Azure (their cloud computing platform), the performance of the Office 365 subscription business, and the outlook for the PC market. Also, monitor the performance of their gaming division, especially Xbox, and LinkedIn.

6. What is the difference between GAAP and non-GAAP earnings? GAAP (Generally Accepted Accounting Principles) earnings are calculated using standardized accounting rules. Non-GAAP earnings may exclude certain items, such as restructuring charges or acquisition-related expenses. Companies often use non-GAAP to provide a clearer picture of their underlying operational performance. Both are important, but understand what’s excluded in the non-GAAP figures.

7. How do currency fluctuations affect Microsoft’s earnings? Since Microsoft operates globally, fluctuations in exchange rates can impact their revenue and earnings when translating foreign sales into US dollars. A strong US dollar can negatively affect reported results, while a weak dollar can boost them.

8. What are the biggest risks facing Microsoft that I should be aware of? Risks include increasing competition in cloud computing from companies like Amazon (AWS) and Google (GCP), regulatory scrutiny of their business practices, and cybersecurity threats. Economic downturns can also impact demand for their products and services.

9. How does Microsoft’s earnings compare to its competitors? Analyzing Microsoft’s earnings in comparison to its peers, such as Amazon, Google (Alphabet), and Apple, can provide valuable insights into the company’s relative performance and market position. Look at growth rates, profitability, and market share in key areas.

10. What is Microsoft’s capital allocation strategy? Microsoft uses its cash flow to invest in research and development, make acquisitions, repurchase shares, and pay dividends. Understanding how they allocate capital can provide insights into their long-term strategy and priorities. Look for changes in these allocations as signals.

11. Where can I find historical earnings reports for Microsoft? The Investor Relations section of Microsoft’s website has an archive of past earnings releases, presentations, and conference call transcripts. You can also find historical data on financial data providers like Bloomberg, Refinitiv, and FactSet.

12. How do analyst ratings affect Microsoft’s stock price after earnings? Analyst ratings (buy, sell, hold) and price targets can influence investor sentiment. If analysts upgrade the stock or raise their price targets after a strong earnings report, it can boost the stock price. Conversely, downgrades can negatively impact the stock. Pay attention to the reasoning behind analyst ratings changes, not just the ratings themselves.

By understanding these key aspects of Microsoft’s earnings reports, you can make more informed investment decisions and better assess the long-term potential of this technology powerhouse. Always conduct thorough research and consider your own investment objectives before making any investment decisions. Remember, past performance is not indicative of future results.