Microsoft Corp (NASDAQ:MSFT), will be reporting its second-quarter earnings on Jan. 30. Wall Street expects $2.78 in EPS and $61.13 billion in revenues as the company reports after market hours.
Microsoft, founded by Bill Gates and Paul Allen in 1975, leads globally in computer software and diverse tech services. Renowned for Windows, Office, and Internet Explorer, it maintains a strong competitive advantage, backed by robust intellectual property like patents and exclusive code. The company has been under the leadership of Satya Nadella, as chairman and CEO of Microsoft since 2014.
Related: Microsoft CEO Satya Nadella Reportedly Gearing Up For India Visit With Focus On AI Opportunities
As Microsoft announces earnings, here’s what analysts will be focusing on, and how the stock currently maps against Wall Street estimates.
Microsoft Investment Thesis
With a valuation of over $3 trillion, Microsoft stands as a powerhouse in artificial intelligence (AI). This has been evident through its strategic $13 billion investment in OpenAI since 2019. Microsoft’s commitment to AI has also translated into the integration of ChatGPT technology across a range of products, including Bing, Windows, Edge, 365, and Azure, showcasing the company’s expansive AI ambitions.
The last fiscal quarter results underscored a significant uptick in business customers for the Azure OpenAI Service segment, reflecting a growing demand for AI solutions. As a key distributor of transformative AI technology, Microsoft positions itself for substantial financial gains.
Financially robust, the company generated an impressive $77.1 billion in net income over the last four quarters, allowing for shareholder returns through a $20.7 billion dividend payout, yielding $2.79 per share—an outperformance compared to technology peers like Apple (NASDAQ:AAPL), Oracle (NASDAQ:ORCL) and Nvidia (NASDAQ:NVDA).
Microsoft’s 19-year track record of dividend growth adds to its appeal, and a proactive share buyback program, with $17.3 billion in stock repurchased, supports organic share price appreciation.
Microsoft’s strategic focus on AI, coupled with strong financial performance and shareholder-friendly initiatives, positions it as a compelling, growth-oriented investment opportunity.
Microsoft Analysts’ Focus & Consensus…
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