Earnings scorecard: 21 out of 22 technology companies beat EPS estimates this week

What happened

This week 22 technology companies reported results, and 21 beat earnings-per-share estimates while 20 beat revenue expectations. Microsoft reported adjusted earnings of $4.89 per share and revenue of $92.28B, up 19%, while Intel guided fourth-quarter revenue to $15B–$16B, below the $17.05B estimate.

Confirmed

Global impact / market context

Broad earnings beats suggest demand for technology products and services stayed firm, supporting revenue and profit for these companies. Intel's weak guidance points the other way: if its sales fall short, that can pressure its costs, cash available, and spending plans, and weigh on investor positioning in chip stocks.

Analyst inference

The results separate clear winners from laggards. Microsoft's cloud growth and above-estimate outlook support its revenue and capital spending plans, while Intel's below-estimate sales forecast signals weaker demand, which can hurt profit per sale and free cash available across parts of the semiconductor industry.

Analyst inference

What to watch

1. Microsoft management said it expects fiscal second-quarter revenue between $96B and $97.1B, above the $95.63B estimate, and reported Azure revenue up 48%. Confirmed
2. Watch whether other technology companies follow Microsoft's above-estimate outlook or Intel's below-estimate guidance, since that split could shape spending plans and investor positioning. Proposed
3. If Intel's weaker sales forecast persists, its profit per sale and cash available may shrink, which could reduce capital spending and pressure suppliers tied to the semiconductor industry. Analyst inference

Evidence

• seekingalpha.com