Microsoft (MSFT) Q1 2025 Earnings Report

Microsoft will report fiscal first quarter results after the regular close of trading on Wednesday.

Here is the LSEG consensus on analyst expectations:

• Earnings per share: $3.10
• Revenue: $64.51 billion

The revenue estimate assumes annual growth of 14% for the quarter ended September 30.

In August, Microsoft announced it would overhaul its business segment reporting to reflect its management approach. Mobility and security services and some Windows revenue will now be part of the Productivity and Business Processes unit, which also includes Office software.

Analysts polled by StreetAccount expect the segment to generate revenue of $27.9 billion. That's 36% higher than the midpoint of management's $20.45 billion forecast in July, as analyst forecasts take the changes into account.

Investors get a clearer picture of cloud consumption. Analysts expect revenue of $24.04 billion from the Intelligent Cloud segment, which includes Azure cloud infrastructure. CNBC's consensus for Azure growth is 32.8%, while StreetAccount's is 29.4%.

In alphabet In its earnings report on Tuesday, the Internet company said its cloud business, which competes with Azure, grew nearly 35% year-over-year to $11.35 billion, beating estimates. Amazonwhich leads the cloud infrastructure market, is expected to report results after the market closes on Thursday.

For Microsoft's More Personal Computing segment, the StreetAccount consensus is $12.56 billion. Microsoft will release a combined growth rate for device sales and Windows operating system license sales to device manufacturers. Industry researcher Gartner estimated that quarterly PC shipments fell 1.3%.

During the quarter, Microsoft worked to help customers recover from a failed update CrowdStrike Security software has crippled Windows PCs worldwide. Microsoft said it would work with BlackRock on an artificial intelligence infrastructure investment fund, with a target of $30 billion in initial capital.

Microsoft's AI investments will continue to be a key focus for investors as the company expands its infrastructure and increases spending on chips to handle higher workloads. Microsoft is the lead investor in ChatGPT developer OpenAI, which was valued at $157 billion in a funding round earlier this month.

As of June 30, Microsoft had more than $108 billion in financial leases that had not yet begun. UBS analysts said these contracts could also include third-party cloud spending to meet AI demand.

At the same time, Microsoft spent more money on fixed assets. Analysts surveyed by Capital IQ expect spending of $14.58 billion for the fiscal first quarter, up 47% from the same period last year.

As of Tuesday's close, Microsoft was up about 15% for the year, while the Nasdaq was up about 25% over the same period.

Executives will discuss the results and provide guidance in a conference call with analysts beginning at 5:30 p.m. ET.

Correction: An earlier version of this story had an incorrect end-of-quarter date. It was September 30th.