Microsoft Q1 Preview: AI, Cloud Key As Company Eyes 15th Straight Double Beat

What happened

Microsoft is expected to report first-quarter revenue of $90.68 billion, up from $77.67 billion a year earlier, and earnings per share of $4.72, up from $4.13. The company is seeking its 15th straight double beat, meaning beating both revenue and earnings estimates.

Confirmed

Global impact / market context

A double beat would show Microsoft is still growing quickly even as investors worry about heavy spending on data centers and artificial intelligence. Missing estimates could hurt technology stocks because Microsoft is one of the largest companies in the market.

Analyst inference

Analyst Dan Ives says big technology companies' spending plans will be closely watched this week. He estimates 800 to 1,000 more U.S. data centers will be built in coming years and sees large cloud providers such as Microsoft as winners.

Analyst inference

What to watch

1. Watch whether Microsoft beats revenue and earnings estimates, which would mark its 15th straight double beat after 14 consecutive quarters of beating both. Confirmed
2. Watch comments on capital spending, meaning money spent on data centers and equipment, because investors worry that heavy spending could pressure profits. Analyst inference
3. Watch demand trends for cloud and artificial intelligence services, since analyst Dan Ives says this week is important for gauging GPU building and enterprise spending plans. Proposed

Evidence

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