Microsoft Earnings Preview: Large And Mega-Cap Tech Trading Better, Will Fundamentals Follow?


  • Microsoft’s expected -7% EPS growth for the Dec ’22 quarter is the first y.y decline expected for EPS since the Sept. 2015 quarter.
  • Street consensus is expecting fiscal ’24 – ’27 to return to mid-teens EPS and revenue growth, which all depends on Azure. Watch Azure guidance, it’s MSFT’s most important metric today.
  • Azure and the cloud are MSFT’s growth engine today.
  • Azure and cloud guidance exiting the Sept ’22 quarter was very conservative.
  • The big positive coming into the earnings release is the tempered expectations for the rest of ’23. No one is expecting much from the software giant.
Entrance of Microsoft headquarters building in Issy les Moulineaux near Paris, France

Jean-Luc Ichard

With Microsoft’s (NASDAQ:MSFT) fiscal Q3 ’23 financial results scheduled to be released on Tuesday, January 24th, 2023, after the market close, investors will get their first look at the SP 500 mega-cap’s earnings results for the December ’22 quarter.


Disclosure: I/we have a beneficial long position in the shares of MSFT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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