• Search Search Please fill out this field.
  • Company News
  • Tech Sector News

Microsoft Q4 FY 2021 Earnings Report Preview: What to Look For

Focus on MSFT YOY Growth in Microsoft Azure revenue

Key Takeaways

  • Analysts estimate adjusted EPS of $1.91 vs. $1.46 in Q4 FY 2020.
  • Microsoft Azure revenue is expected to rise sharply YOY, but slow compared to the year-ago quarter and to Q3 FY 2021.
  • Revenue is expected to rise as Microsoft moves to speed up growth through acquisitions.

Microsoft Corp. ( MSFT ) has embarked on an acquisition spree amid strong financial performance over the past year, buying up companies in healthcare, artificial intelligence ( AI ), and cybersecurity. In April, the company agreed to buy AI speech recognition firm Nuance Communications Inc. ( NUAN ) for $16 billion. Earlier this month, Microsoft said it agreed to pay more than $500 million for security software firm RiskIQ Inc. amid a rise in high-profile cyberattacks.

Investors will assess these deals' longterm impact and the company's latest financial performance when it reports earnings on July 27, 2021 for Q4 FY 2021. Microsoft's fiscal year 2021 ended on June 30. Analysts expect robust year-over-year ( YOY ) growth in the company's adjusted earnings per share ( EPS ) and revenue.

Investors will also focus on YOY revenue growth in Azure, which is a key component of Microsoft's cloud computing business that offers a comprehensive set of services to developers, IT professionals, and enterprises. Analysts expect strong growth in Azure revenue, albeit at its slowest pace in at least the past four years.

Microsoft's shares have outperformed the broader market over the past year, but that outperformance only began in late June of 2021. The stock kept pace with the market from mid-July 2020 untill about early November 2020. After that, it mostly underperformed until mid-to-late June 2021. Shares of Microsoft have provided a total return of 44.4% over the past year, above the S&P 500's total return of 36.4%.

Microsoft Earnings History

The stock sank after Microsoft reported financial results for Q3 FY 2021 despite beating analysts' earnings and revenue estimates. Adjusted EPS rose 39.4% compared to the year-ago quarter. Revenue grew 19.1% YOY. It was the fastest pace of growth for either metric in at least 17 quarters. The company noted that digital adoption was continuing to accelerate amid the ongoing COVID-19 pandemic as increasing numbers of businesses move their operations to the cloud.

Microsoft also beat analysts' earnings and revenue expectations for Q2 FY 2021 . Adjusted EPS rose 34.1% YOY, continuing an acceleration trend that began in the previous quarter. Revenue grew 16.7%, its fastest pace since Q1 FY 2019. The company highlighted the role its comprehensive cloud platform was playing in the acceleration of the digital transformation noted above.

Analysts expect Microsoft's strong financial performance to continue in Q4 FY 2021, albeit slower than Q3. Adjusted EPS is expected to rise 30.7% as revenue expands 16.4% compared to the year-ago quarter. For full-year FY 2021, analysts forecast that adjusted EPS will rise 34.1% as annual revenue climbs 16.2%. That would be the fastest pace for either metric in at least six years.

Microsoft Key Stats
  Estimate for Q4 2021 (FY)  Q4 2020 (FY) Q4 2019 (FY)
Adjusted Earnings Per Share ($) 1.91 1.46 1.37
Revenue ($B) 44.3 38.0 33.7
YOY Growth in Microsoft Azure Revenue (%) 43.1 46.7 63.5

Source: Visible Alpha

The Key Metric

As mentioned above, investors will also focus on revenue growth in Azure, which forms, along with services like SQL server and Visual Studio, a part of Microsoft's Intelligent Cloud segment. Azure is a cloud platform that offers developers, IT professionals, and enterprises a suite of tools and services that can be used for networking, storage, mobile and web application services, AI, Internet of Things ( IoT ), and a range of other computing needs. It captured an approximately 20% share of the $150-billion global cloud market as of the end of Q1 2021. Microsoft's Azure is second only to Amazon.com Inc.'s ( AMZN ) Amazon Web Services in terms of global cloud market share. Azure is expected to benefit from another recent acquisition by Microsoft: AT&T Inc.'s ( T ) Network Cloud technology. AT&T will still operate its network, but Microsoft will be handling the wireless carrier's 5G cloud operations.

Azure has become an important driver of growth at Microsoft in recent years, outpacing the company's overall revenue growth. Despite that superior performance, the pace of growth has slowed. Azure's annual revenue grew 115.5% in FY 2016 and decelerated in each year since then, slowing to 56.3% in FY 2020. In Q1 FY 2021, Azure's quarterly revenue continued that trend, increasing at a YOY pace of 44.9%. However, that growth began to accelerate again, rising by 47.2% YOY in the second quarter and by 50.4% YOY in the third quarter. Analysts expect Azure revenue to grow 43.1% in Q4 FY 2021, breaking the acceleration trend but still a robust pace. For full-year FY 2021, analysts forecast Azure revenue to grow 45.2% to $29.6 billion. If analysts are correct in their estimates for Azure and companywide revenue, Azure would account for approximately 18% of Microsoft's total revenue.

Wall Street Journal. " Cash-Laden Companies Are on a Mergers and Acquisitions Spree ."

Wall Street Journal. " Microsoft Bulks Up With $16 Billion Deal for Nuance Communications ."

Bloomberg. " Microsoft Agrees to Acquire Cybersecurity Company RiskIQ ."

Microsoft Corp. " Microsoft announces quarterly earnings release date ."

Microsoft Corp. " Frequently Asked Questions ."

Visible Alpha. " Financial Data ."

Microsoft Corp. " Form 10-K for the fiscal year ended June 30, 2020 ," Page 9.

Microsoft Corp. " Microsoft Cloud Fuels Third Quarter Results ."

Microsoft Corp. " Microsoft Cloud Strength Drives Second Quarter Results ."

Statista. " Amazon Leads $150-Billion Cloud Market ."

Bloomberg. " AT&T Is Moving Its 5G Cloud Network to Microsoft’s Azure ."

microsoft earnings presentation

  • Terms of Service
  • Editorial Policy
  • Privacy Policy

Microsoft earnings call: What can we expect from MSFT’s Q2 report

' src=

Sam Shedden is an experienced journalist and editor with over a decade of experience in online news. A seasoned technology writer and content strategist, he…

An abstract image with the Microsoft Window's logo in the centre and wires around it to represent the growth of AI and how Microsoft has benefited.

Microsoft (MSFT) is set to report its second-quarter earnings for the 2024 fiscal year after the market closes today (Jan 30).

Analysts expect the world’s most valuable company to post strong results across its business segments as demand for cloud computing and artificial intelligence (AI) services continues.

Microsoft is charging full steam ahead on commercializing generative AI capabilities. This month, the tech giant opened up AI writing tool Copilot Pro to all consumers for $20 per month. It also removed previous restrictions on its Copilot for Microsoft 365 so any business can now access the AI-powered productivity features.

The company has invested heavily in OpenAI , the maker behind ChatGPT , as it looks to solidify itself as a leader in the red-hot AI space. Rivals like Alphabet, Amazon and Meta are racing to keep pace with their AI investments and products. Microsoft’s upcoming earnings will offer clues into whether its AI focus is paying off.

Microsoft’s year-on-year growth

Wall Street analysts forecast Microsoft will report adjusted earnings per share (EPS) of $2.78 on revenue of $61.1 billion for the quarter. This would represent impressive year-on-year growth when the software posted EPS of $2.32 on $52.7 billion in revenue.

The star of the show will likely once again be Microsoft’s Intelligent Cloud segment which contains its Azure public cloud platform. Intelligent Cloud revenue is projected to climb 18% year-over-year to $25.3 billion. Total commercial cloud revenue could top $32.2 billion, up 19% from last year’s quarter.

Analysts will be listening closely for an update on Azure’s growth rate and how that business performs relative to rivals like Amazon Web Services and Google Cloud. Adoption of AI tools and services like Microsoft’s Copilot will also be an area of focus.

Microsoft 365 and LinkedIn should drive top-line growth and the Productivity and Business Processes segment is expected to generate $19 billion in the quarter, 12% higher than the prior year period.

The personal computing unit, consisting of Windows, devices, gaming and search is forecast to notch $16.8 billion in sales. Investors will be keen to hear about demand trends for Windows 11 and Xbox gaming services.

What time is the Microsoft earnings call?

Microsoft’s earnings call will take place on January 30 at 2:30 pm PT / 5:30 EST. It can be listened to live on the company’s investor site .

Microsoft remains well positioned heading into its earnings report, riding tailwinds from businesses digitally transforming operations via cloud computing and AI.

Featured image: Dall-E

About ReadWrite’s Editorial Process

The ReadWrite Editorial policy involves closely monitoring the tech industry for major developments, new product launches, AI breakthroughs, video game releases and other newsworthy events. Editors assign relevant stories to staff writers or freelance contributors with expertise in each particular topic area. Before publication, articles go through a rigorous round of editing for accuracy, clarity, and to ensure adherence to ReadWrite's style guidelines.

' src=

Sam Shedden Executive Editor

Sam Shedden is an experienced journalist and editor with over a decade of experience in online news. A seasoned technology writer and content strategist, he has contributed to many UK regional and national publications including The Scotsman, inews.co.uk, nationalworld.com, Edinburgh Evening News, The Daily Record and more. Sam has written and edited content for audiences whose interests include media, technology, AI, start-ups and innovation. He's also produced and set-up email newsletters in numerous specialist topics in previous roles and his work on newsletters saw him nominated as Newsletter Hero Of The Year at the UK's Publisher Newsletter Awards 2023. He…

Related News

a beautiful man strikes a pose for the in-world dating app of The Sims 4's Lovestruck Expansion

The Sims 4 buffs up the romance options with an expansion launching in July

youtube logo with an blue aura of power around it on a stage with musical notes emanating from it, poster, vibrant

YouTube wants record labels to license music for its AI song generator

an AI coaching and critiquing another AI

OpenAI launches CriticGPT to catch ChatGPT errors

A captivating 3D render of a cutting-edge character generation platform set in a futuristic, digital creative studio. The central focus is a large, interactive touchscreen displaying a partially created humanoid character with customizable features such as hair, facial expressions, clothing, and accessories.

Character.AI just got a major upgrade

a large office building cutaway with workers looking unhappy. and walking out a large door on the side with 'exit' on it, illustration

Great Resignation 2.0 could be coming as more workers want to switch jobs in next year

Most popular tech stories.

  • Samsung Galaxy S25: release date, specs and price
  • ChatGPT-5: release date, price, and what we know so far
  • 4 Best Meme Coin Presales to Buy in June 2024 – $PLAY, $WAI, $SEAL, and $DAWGZ
  • AI in Digital Marketing: Trends and Best Practices for 2024
  • Level Up Your Crypto Casino Experience with Mega Dice Token Presale, Featuring Referrals and Airdrop Bonuses – OnlineHustleTV Reviews

Latest News

Kai Cat Coin Presale Price ($KAI) Ends Tomorrow!

Last Chance To Buy – Kai Cat Coin Presale Price ($KAI) Ends Tomorrow!

Today is the last day altcoin gem hunters eager for another Web3 heist can purchase Kai Cat Coin (KAI) tokens in presale for a fixed, low, pre-market price with sound...

Dreamcars Crypto is Driving the Future of Luxury Car Investments

How Dreamcars Crypto is Driving the Future of Luxury Car Investments

Pepe-Inspired Token Sees Strong Demand As Presale Explodes Past $1 Million

Pepe-Inspired Token Sees Strong Demand as Presale Explodes Past $1 Million

a beautiful man strikes a pose for the in-world dating app of The Sims 4's Lovestruck Expansion

VanEck SOL ETF Filing – Expert Predicts Solana Price’s Next Move

Popular topics.

AI

Get the biggest tech headlines of the day delivered to your inbox

By signing up, you agree to our Terms and Privacy Policy. Unsubscribe anytime.

Explore the latest in tech with our Tech News. We cut through the noise for concise, relevant updates, keeping you informed about the rapidly evolving tech landscape with curated content that separates signal from noise.

Explore tech impact in In-Depth Stories. Narrative data journalism offers comprehensive analyses, revealing stories behind data. Understand industry trends for a deeper perspective on tech's intricate relationships with society.

Empower decisions with Expert Reviews, merging industry expertise and insightful analysis. Delve into tech intricacies, get the best deals, and stay ahead with our trustworthy guide to navigating the ever-changing tech market.

  • Today's news
  • Reviews and deals
  • Climate change
  • 2024 election
  • Fall allergies
  • Health news
  • Mental health
  • Sexual health
  • Family health
  • So mini ways
  • Unapologetically
  • Buying guides

Entertainment

  • How to Watch
  • My Portfolio
  • Latest News
  • Stock Market
  • Biden Economy
  • Stocks: Most Actives
  • Stocks: Gainers
  • Stocks: Losers
  • Trending Tickers
  • World Indices
  • US Treasury Bonds
  • Top Mutual Funds
  • Highest Open Interest
  • Highest Implied Volatility
  • Stock Comparison
  • Advanced Charts
  • Currency Converter
  • Basic Materials
  • Communication Services
  • Consumer Cyclical
  • Consumer Defensive
  • Financial Services
  • Industrials
  • Real Estate
  • Mutual Funds
  • Credit Cards
  • Balance Transfer Cards
  • Cash-back Cards
  • Rewards Cards
  • Travel Cards
  • Credit Card Offers
  • Best Free Checking
  • Student Loans
  • Personal Loans
  • Car Insurance
  • Mortgage Refinancing
  • Mortgage Calculator
  • Morning Brief
  • Market Domination
  • Market Domination Overtime
  • Asking for a Trend
  • Opening Bid
  • Stocks in Translation
  • Lead This Way
  • Good Buy or Goodbye?
  • Fantasy football
  • Pro Pick 'Em
  • College Pick 'Em
  • Fantasy baseball
  • Fantasy hockey
  • Fantasy basketball
  • Download the app
  • Daily fantasy
  • Scores and schedules
  • GameChannel
  • World Baseball Classic
  • Premier League
  • CONCACAF League
  • Champions League
  • Motorsports
  • Horse racing
  • Newsletters

New on Yahoo

  • Privacy Dashboard

Yahoo Finance

Do microsoft's (nasdaq:msft) earnings warrant your attention.

The excitement of investing in a company that can reverse its fortunes is a big draw for some speculators, so even companies that have no revenue, no profit, and a record of falling short, can manage to find investors. Sometimes these stories can cloud the minds of investors, leading them to invest with their emotions rather than on the merit of good company fundamentals. While a well funded company may sustain losses for years, it will need to generate a profit eventually, or else investors will move on and the company will wither away.

So if this idea of high risk and high reward doesn't suit, you might be more interested in profitable, growing companies, like Microsoft ( NASDAQ:MSFT ). Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide Microsoft with the means to add long-term value to shareholders.

See our latest analysis for Microsoft

How Fast Is Microsoft Growing?

Generally, companies experiencing growth in earnings per share (EPS) should see similar trends in share price. Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS. We can see that in the last three years Microsoft grew its EPS by 16% per year. That's a pretty good rate, if the company can sustain it.

Top-line growth is a great indicator that growth is sustainable, and combined with a high earnings before interest and taxation (EBIT) margin, it's a great way for a company to maintain a competitive advantage in the market. Microsoft shareholders can take confidence from the fact that EBIT margins are up from 41% to 45%, and revenue is growing. Ticking those two boxes is a good sign of growth, in our book.

In the chart below, you can see how the company has grown earnings and revenue, over time. For finer detail, click on the image.

In investing, as in life, the future matters more than the past. So why not check out this free interactive visualization of Microsoft's forecast profits ?

Are Microsoft Insiders Aligned With All Shareholders?

Owing to the size of Microsoft, we wouldn't expect insiders to hold a significant proportion of the company. But we do take comfort from the fact that they are investors in the company. Indeed, they have a considerable amount of wealth invested in it, currently valued at US$1.1b. We note that this amounts to 0.03% of the company, which may be small owing to the sheer size of Microsoft but it's still worth mentioning. This should still be a great incentive for management to maximise shareholder value.

Is Microsoft Worth Keeping An Eye On?

One positive for Microsoft is that it is growing EPS. That's nice to see. To add an extra spark to the fire, significant insider ownership in the company is another highlight. That combination is very appealing. So yes, we do think the stock is worth keeping an eye on. We don't want to rain on the parade too much, but we did also find 1 warning sign for Microsoft that you need to be mindful of.

While opting for stocks without growing earnings and absent insider buying can yield results, for investors valuing these key metrics, here is a carefully selected list of companies in the US with promising growth potential and insider confidence.

Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

microsoft earnings presentation

Microsoft 365 Life Hacks > Presentations > How to Present Survey Results

How to Present Survey Results

After you complete a survey, it can be difficult to tell a story with the data you gathered. Data storytelling needs to consider your audience, how to articulate findings, and data visualization tools that can make it happen. Whether it’s for a client or among your team, it’s important for your audience to understand your results and translate them into actionable decisions. Learn how to conduct presentations on survey results methodically, by relying on best practices and tools.

A survey and graph

What Are the Best Ways to Present Survey Results?

To present survey results effectively, you need to utilize a combination of techniques, practices, and visuals to ensure clarity and engagement. Incorporate the following strategies in your presentation:

Tell your story with captivating presentations Banner

Tell your story with captivating presentations

Powerpoint empowers you to develop well-designed content across all your devices

Select an Appropriate Format

One of the first decisions to make when presenting survey results is selecting the appropriate format. Consider the preferences of your audience and the complexity of the data. Microsoft PowerPoint presentations succinctly summarize key findings in a digestible visual format, so your audience can engage with them. You can also explore other formats, like a written report or interactive dashboard, which also provides advantages for different audiences.

Visualize Your Data

The purpose of data visualization is to tell a story, making important data points compelling and easily understood by the audience. You can use charts, graphs, infographics , and diagrams to make your results understandable and appealing. Keep your audience and data in mind as you decide which data visualizations feel appropriate.

Know Your Audience

When crafting your presentation, it’s important to understand your audience so you can tailor the presentation’s delivery to their needs and understanding. Consider their background, expertise, and interests when preparing your presentation. Before the presentation, clarify any needs to ensure that your presentation meets expectations. The language and terminology you use should be appropriate for your audience; it’s important to avoid too much jargon or confusing technical terms.

Practice and Rehearse Your Presentation

When delivering presentations that share survey results, thorough practice and rehearsal is essential. You want to clearly articulate data points, build confidence in your presentation, and confirm that your presentation doesn’t exceed any existing time constraints. Additionally, you should prepare for potential questions from the audience, so that you’re not caught off guard at the end of the presentation. PowerPoint’s speaker notes can help you practice what to say without forgetting a key point.

Foster Audience Engagement

Finally, you should create opportunities for audience engagement. Encouraging questions, discussions, and feedback fosters collaboration and interaction. You can incorporate polls and direct questions to the audience to foster active engagement. Listening to input and addressing questions or comments can help you ensure a productive and meaningful presentation experience for everyone involved.

By employing these techniques and practices, you can conduct presentations on survey results that are informative, engaging, and actionable. With meticulous preparation and rehearsal, you can communicate survey results in way that drives actionable insights and decisions, while leaving a positive impression on your audience. For more ways to improve your data storytelling and visualization, learn more presentation tips .

Get started with Microsoft 365

It’s the Office you know, plus the tools to help you work better together, so you can get more done—anytime, anywhere.

Topics in this article

More articles like this one.

microsoft earnings presentation

How to introduce yourself in a presentation

Gain your audience’s attention at the onset of a presentation. Craft an impressionable introduction to establish tone, presentation topic, and more.

microsoft earnings presentation

How to add citations to your presentation

Conduct research and appropriately credit work for your presentation. Understand the importance of citing sources and how to add them to your presentation.

microsoft earnings presentation

How to work on a group presentation

Group presentations can go smoothly with these essential tips on how to deliver a compelling one.

microsoft earnings presentation

How to create a sales presentation

Engage your audience and get them interested in your product with this guide to creating a sales presentation.

Microsoft 365 Logo

Everything you need to achieve more in less time

Get powerful productivity and security apps with Microsoft 365

LinkedIn Logo

Explore Other Categories

Microsoft Corporation 2022 Q2 - Results - Earnings Call Presentation

SA Transcripts profile picture

The following slide deck was published by Microsoft Corporation in conjunction with their 2022 Q2 earnings call.

microsoft earnings presentation

This article was written by

SA Transcripts profile picture

Recommended For You

About msft stock.

SymbolLast Price% Chg

More on MSFT

Trending analysis, trending news.

microsoft earnings presentation

  • Share full article

Advertisement

Supported by

DealBook Newsletter

A Debate Cheat Sheet for Business

Tax policy, inflation, the economy and markets will be some key issues for corporate America and Wall Street in tonight’s showdown between President Biden and Donald Trump.

By Andrew Ross Sorkin ,  Ravi Mattu ,  Bernhard Warner ,  Sarah Kessler ,  Michael J. de la Merced ,  Lauren Hirsch and Ephrat Livni

President Biden and Donald Trump appear on a large outdoor screen on a pier that overlooks a body of water.

Talking points

All eyes will be on CNN at 9 p.m. Eastern, when President Biden and Donald Trump face off in their first debate since 2020 . Among the keenest watchers will be executives and investors looking for signs about how the candidates might handle the economy and business in a second term.

There will be plenty to scrutinize in the 90-minute, audience-free debate, including what the candidates say and how they say it. Here’s what we will be looking out for. (And, for a lighter take, check out our debate “bingo card” further below.)

The economy is the big question . Various measures show strong growth under Biden, but many voters feel differently. What will Biden and Trump say about some of the key issues?

Inflation: This is clearly a challenge for the president, as Americans complain about what they’re paying in the grocery store, at the pump and on their rent. Biden can say that price increases are slowing down, and will most likely emphasize his administration’s efforts to crack down on “ corporate greed ,” like taking on so-called junk fees . Trump will probably stress how good things were when he took office in 2017 — an economy many Americans want back.

Taxes: Biden’s proposals for higher corporate taxes will hit profits: “It’s simple math,” David Bahnsen, the founder and chief investment officer of the Bahnsen Group, told DealBook. Many business leaders don’t like Biden’s plan to increase taxes on the wealthy, either. Trump will probably stress his desire to extend his 2017 tax cuts and lower the corporate rate to 20 percent. But questions about corporate earnings and the economy may eclipse those concerns.

Protectionism: Both candidates want to increase tariffs on Chinese goods, but Biden has been more targeted in how he has done it during his presidency. Trump has proposed significantly higher across-the-board levies , though it’s unclear how serious he is about it. Economists have warned that Trump’s potential approach could aggravate inflation and hurt the economy .

Markets: The S&P 500 set 31 records this year; investors will hope neither party messes with that momentum. In Thursday night’s debate, “markets probably care more about presentation than policy pledges,” Paul Donovan, an economist at UBS, wrote in a client note. Biden may have a slight edge, he added, since investors would prefer keeping “some continuity.”

Other issues will probably feature prominently. Biden will most likely raise abortion rights, a topic that has helped Democrats win in recent elections. Trump will almost certainly speak a lot about immigration, perhaps his most potent issue — and one that many, including Elon Musk , say is a failure of Biden’s.

The intangibles will matter. Executives told DealBook that C.E.O.s will be paying attention to how Biden and Trump perform:

For Biden, 81, an important issue for business leaders and many voters is whether he is still fit to serve. A sharp, forceful performance could go a ways in quieting any concerns.

For Trump, 78, competence is a question as well. But his demeanor will also be under scrutiny, especially if he comes across as overly abrasive or erratic. Some executives said their feelings would come down to whether they can stomach another four years of a Trump presidency.

There’s also the show around the show. Trump has suggested that his potential running mate would be in Atlanta for the debate. The Times reports that his list is narrowing, with Senator J.D. Vance of Ohio, Gov. Doug Burgum of North Dakota and Senator Marco Rubio of Florida being of particular interest.

The pick may matter a great deal to Trump’s campaign: The Republican megadonor Ken Griffin has said the choice could influence whether he opens up his wallet for Trump .

We are having trouble retrieving the article content.

Please enable JavaScript in your browser settings.

Thank you for your patience while we verify access. If you are in Reader mode please exit and  log into  your Times account, or  subscribe  for all of The Times.

Thank you for your patience while we verify access.

Already a subscriber?  Log in .

Want all of The Times?  Subscribe .

You're reading a free article with opinions that may differ from The Motley Fool's Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

International Business Machines (IBM) Q1 2024 Earnings Call Transcript

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources , and more. Learn More

International Business Machines

International Business Machines Stock Quote

IBM earnings call for the period ending March 31, 2024.

Logo of jester cap with thought bubble.

Image source: The Motley Fool.

International Business Machines ( IBM 1.23% ) Q1 2024 Earnings Call Apr 24, 2024 , 5:00 p.m. ET

  • Prepared Remarks
  • Questions and Answers
  • Call Participants

Prepared Remarks:

Welcome, and thank you for standing by. At this time, all participants are in a listen-only mode. Today's conference is being recorded. If you have any objections, you may disconnect at this time.

Now, I will turn the meeting over to Olympia McNerney, IBM's global head of investor relations. Olympia, you may begin.

Olympia McNerney -- Global Head, Investor Relations

Thank you. I'd like to welcome you to IBM's first quarter 2024 earnings presentation. I'm Olympia McNerney, and I'm here today with Arvind Krishna, IBM's chairman and chief executive officer; and Jim Kavanaugh, IBM's senior vice president and chief financial officer. We'll post today's prepared remarks on the IBM investor website within a couple hours, and a replay will be available by this time tomorrow.

To provide additional information to our investors, our presentation includes certain non-GAAP measures. For example, all of our references to revenue and signings growth are at constant currency. We provided reconciliation charts for these and other non-GAP financial measures at the end of the presentation, which is posted to our investor website. Finally, some comments made in this presentation may be considered forward-looking under the Private Securities Litigation Reform Act of 1995.

These statements involve factors that could cause our actual results to differ materially. Additional information about these factors is included in the company's SEC filings. So, with that, I'll turn the call over to Arvind.

Arvind Krishna -- Chairman and Chief Executive Officer

Thank you for joining us. In the first quarter, we had solid performance across revenue and cash flow. These results are further proof of the quality of our portfolio and our hybrid cloud and AI strategy. We had good performance in software, at the high end of our model; continued strength in infrastructure, above our model; while consulting was below model.

On a relative basis, consulting outperformed the market. Our cash flow generation is the strongest first quarter level we have reported in many years. This performance speaks to the strength of our diversified business model. Before we get into more detail on the quarter, let me address the announcement of our agreement to acquire HashiCorp, a company we have partnered with for a long time and believe is a tremendous strategic fit with IBM.

Enterprise clients are wrestling with an unprecedented expansion in infrastructure applications across public and private clouds, as well as on-prem environments, making this the ideal time to pursue this acquisition. As generative AI deployment accelerates alongside traditional workloads, developers are working with increasingly heterogeneous, dynamic, and complex infrastructure strategies. HashiCorp has a proven track record of helping clients manage the complexity of today's infrastructure by automating, orchestrating, and securing hybrid and multi-cloud environments. HashiCorp is a great strategic addition to our portfolio, extending Red Hat's hybrid cloud capabilities to provide end-to-end automated infrastructure and security lifecycle management.

HashiCorp's technology is foundational to enabling the transition to hybrid and multi-cloud. And Terraform is the industry standard for infrastructure automation for these environments. With security top of mind for every enterprise, Vault is a powerful secrets management offering to automate identity security across applications. The combination will also bolster our leading IT automation platform to address the sprawling complexity of AI-driven application and infrastructure growth.

HashiCorp's products have wide-scale adoption in the developer community, highlighting the pervasive nature of their technology used by over 85% of the Fortune 500 and downloaded over half a billion times. The acquisition of HashiCorp builds on IBM's commitment to industry collaboration, the developer community, and open-source hybrid cloud and AI innovation. Today's acquisition is consistent with our M&A strategy. We have taken a disciplined approach to M&A, and HashiCorp aligns well across all our key criteria to continue to focus and strengthen our portfolio on hybrid cloud and AI, deliver synergies with the rest of IBM, and be near-term accretive to free cash flow.

I will now turn it to Jim to discuss the financial implications.

Jim Kavanaugh -- Senior Vice President and Chief Financial Officer

Thank you, Arvind. Let me start with the details of the transaction. We have agreed to acquire HashiCorp for $6.4 billion in enterprise value to be funded by cash on hand. The transaction was approved by HashiCorp's board of directors.

Closing is anticipated by the end of 2024, subject to approval by HashiCorp's shareholders, regulatory approvals, and other customary closing conditions. We have been executing a disciplined capital allocation strategy, and the acquisition of HashiCorp meets all of our criteria, including strategic fit as Arvind just walked through, synergies across IBM, and financial accretion. Let me start by addressing synergies. We see multiple drivers of product synergies within IBM and accelerating growth for HashiCorp.

Product synergies span across multiple strategic growth areas for IBM, including Red Hat, watsonx, data security, IT automation, and consulting. For example, the powerful combination of Red Hat's Ansible Automation Platform's configuration management and Terraform's automation will simplify provisioning and configuration of applications across hybrid cloud environments. We are well-positioned to drive growth for HashiCorp by leveraging IBM's enterprise incumbency and global reach. With 70% of the revenue today coming from the U.S., the opportunity to scale HashiCorp across IBM's operations in 175 countries is significant.

We also believe we can accelerate HashiCorp's adoption with IBM clients. To put this in perspective, only about 20% of the Forbes Global 2000 are HashiCorp customers. And just a quarter of HashiCorp customers result in more than 100,000 annual recurring revenue, underscoring the opportunity to better monetize and upsell their products. Bringing it all together, the acquisition allows us to deliver a more comprehensive hybrid cloud offering to enterprise clients, enhancing IBM's ability to capture global cloud opportunity.

This will drive a higher growth profile over time. Finally, we expect to realize operating efficiencies and expect the transaction to be accretive to adjusted EBITDA within the first full year post-close and to free cash flow in year two. Significant near-term cost synergies underpin the financial profile of the transaction, while product synergies represent further upside. We are very comfortable with our strong balance sheet, liquidity profile, and solid investment grade rating, and remain committed to our dividend policy.

I'll now turn it back to Arvind.

Now, turning back to the quarter, let me start with a few comments on the macroeconomic environment. We expect the global economy to behave similarly to last year, albeit with some uncertainty due to persistently high interest rates. There are reasons to believe technology will be even more important in 2024 as clients focus on productivity improvements and customer experience. AI-driven productivity in particular continues to be a top priority for businesses for both cost reductions and new revenue opportunities.

I will now provide some details on the execution of our strategy around hybrid cloud and AI. Enterprise AI continues to gain traction. This year, we anticipate more clients moving from experimenting to deploying AI at scale to unlock productivity. We are pleased with the solid progress of our AI offerings.

Each quarter, we are winning more clients, expanding partnerships, and introducing new innovations. Inception to date, our book of business related to watsonx and generative AI is greater than $1 billion with sequential quarter over quarter growth. Similar to last quarter, this remains weighted toward consulting. We believe our comprehensive AI strategy is well-positioned to help clients scale AI.

We developed our watsonx platform for clients to build their AI solutions, spanning from foundation model training, to data preparation and governance. This includes both IBM Granite models and third-party models, giving our clients variety, as well as the efficiency and focus on enterprise domains that IBM brings. We have leveraged watsonx to build AI assistance through our software portfolio. Our consultants are helping clients navigate the AI landscape.

And finally, we are seeing our infrastructure segment play a larger role as clients leverage their hardware investments in their AI strategies. Let me touch on these infrastructure dynamics briefly. As AI becomes widely adopted, IBM Z is uniquely advantaged. We believe a lot of AI inferencing will happen where the data is for security, efficiency, and latency reasons.

Our full stack focus from on-chip AI processing, to AI accelerator cards, to watsonx platform support allows models to be built and trained on any platform and easily deployed on IBM Z. The Telum chip is a unique differentiator, enabling real-time AI inferencing. Generative AI is also driving lift for our storage offerings, where industry-leading performance and scalability is utilized for data curation, model building, and fine-tuning. For enterprises to deploy AI at scale, AI is not a one-size-fits-all proposition.

It requires tuned, domain-specific models, trained with quality data to maximize its impact. Clients value the flexibility of our approach. They appreciate having the ability to leverage a combination of AI models, whether they are IBMs, their own models, open-source models, such as Llama from Meta and Mixtral from Mistral. And they can deploy these AI models across multiple environments.

The flexibility we offer is resonating as there are use cases for both large and more efficient models. We are committed to an open innovation ecosystem around AI to help our clients maximize flexibility and leverage skills. Let me spend a minute on our progress in this area. We see early parallels to Linux in making open-source AI models performing for enterprise use.

We believe that IBM with Red Hat can be a key driver of open-source AI. As you know, we have done a lot of work with AI models and recently released a family of state-of-the-art open-source code models from our Granite series. Red Hat and IBM also recently launched Instruct Lab to evolve and improve AI models through incremental community contributions, much like open-source software. This open strategy is resonating around the world.

We recently announced a collaboration with the Spanish government to leverage IBM's investments across the entire AI stack and open source to build the world's leading suite of foundation models proficient in the Spanish language. Enterprise use cases addressing code modernization, customer service, and digital labor remain top of mind for our clients. This quarter, we signed a multi-year contract with Providence Health to reimagine talent and HR workflows with AI from IBM and partners. We're also providing data-driven insights and enabling Spanish language narration for this year's Masters Golf Tournament.

Our partner ecosystem remains essential to both AI and hybrid cloud growth. This quarter, we've progressed strategic partnerships with a number of industry leaders, consulting joint forces with NVIDIA to accelerate clients' AI journeys. ServiceNow will embed watsonx AI capabilities into the ServiceNow platform to accelerate enterprise digital transformation. We also expanded our relationship with Adobe around OpenShift and watsonx as it relates to the Adobe Experience platform.

We continue to invest in emerging technology as well, bringing new innovations to the market. Since we put the world's first quantum system on the cloud in 2016, we have deployed over 80 quantum systems, and our users have run over 3 trillion programs to date. We just installed the Quantum System One at Rensselaer Polytechnic Institute. This is the first IBM quantum system on a college campus anywhere in the world.

This installation will advance research in critical areas, such as energy storage, material science, and financial modeling. As always, focusing our portfolio remains a key priority. We close the sale of The Weather Company in the first quarter and expect to close the announced acquisition of stream sets and web methods from Software AG by mid-year. Overall, we had a positive start to the year, which gives us confidence in our next quarter and full your expectations.

Jim will now take you through the details of the quarter. Jim, over to you.

Thanks, Arvind. In the first quarter, we delivered $14.5 billion in revenue, $3 billion of adjusted EBITDA, $1.7 billion of operating pre-tax income, and $1.68 operating earnings per share. And we generated free cash flow of $1.9 billion, up approximately $600 million year over year. Our revenue for the quarter was up 3% of constant currency.

We saw an impact to our top-line performance from the closing of The Weather Company earlier than expected in the quarter. Software grew by 6%, with growth across hybrid platform and solutions and transaction processing, and continued strength in our recurring revenue base. Consulting was up 2%, reflecting organic growth. We continue to have solid signings performance and a trailing 12-month book-to-bill of over 1.15.

Infrastructure had strong performance, delivering growth across all of our hardware offerings. Looking at our profit metrics, we expanded operating gross margin by 100 basis points and operating pre-tax margin by 130 basis points over last year, inclusive of about 100 basis-point currency headwind to pre-tax margin. At the end of January, we closed on the divestiture of The Weather Company, generating a pre-tax gain of $241 million in the quarter. Mitigating that benefit, we took charges of $374 million to address workforce rebalancing.

Operating pre-tax margin was up 50 basis points, excluding the year-over-year impacts of workforce rebalancing and divestiture dynamics. We are pleased with this performance, in line with our guidance of roughly 50 basis points of operating pre-tax margin improvement in 2024. Margin expansion was driven by our operating leverage, product mix, and ongoing productivity initiatives. This allowed for continued investments to drive innovation, which you can see in our higher R&D expense.

The timing of discrete tax items this quarter resulted in an operating tax rate of about 6%. We are still expecting a full year operating tax rate consistent with last year. Overall, the combination of our revenue and operating margin performance resulted in 7% growth in our adjusted EBITDA. This contributed to our free cash flow performance.

For the quarter, we generated $1.9 billion of free cash flow, up $600 million year over year. This growth reflects the performance of our underlying business with adjusted EBITDA up $200 million year over year and about $400 million from timing of balance sheet dynamics and capex. Over the last 12 months, we generated free cash flow of $11.8 billion. This puts us on track to deliver about $12 billion of free cash flow for the year, with the growth largely driven by adjusted EBITDA.

Since our acquisition of Red Hat, excluding 2021 when we spun off Kyndryl, our operating net income to free cash flow realization averaged 120%. Two factors drive this. One is stock-based compensation, which today represents 15 points of realization. And two, given the shift in our portfolio to a growing software business, deferred income also contributes to our realization.

In terms of cash uses, we return $1.5 billion to shareholders in the form of dividends. From a balance sheet perspective, we have a very strong liquidity position, with cash of $19.3 billion, up from $13.5 billion at year end 2023. Our debt balance at the end of the first quarter was $59.5 billion, including $9.9 billion from our financing business. Turning to the segments, software revenue grew 6%, with good performance across both hybrid platform and solutions and transaction processing.

As mentioned in January, the software revenue growth drivers for the year include Red Hat growth, acquisitions, strong recurring revenue, and transaction processing. And this is just how the first quarter played out. Hybrid platform and solutions revenue was up 7%. Let me spend a minute on the various elements.

Red Hat revenue grew 9%, reflecting solid performance across the three key solutions, RHEL, OpenShift, and Ansible. Annual bookings growth was again in the midteens, with OpenShift up over 40% this quarter, and RHEL and Ansible each up double digits. Beyond Red Hat, recent acquisitions contributed to the growth profile of hybrid platform and solutions, as did new innovation areas, including watsonx. The combination of Apptio acquired mid last year and our IT automation portfolio has delivered strong results, unlocking the full benefits of a fin ops solution for technology investments across hybrid cloud environments.

In fact, just this quarter, we partnered with Microsoft to bring Apptio to Azure and will co-sell to our joint customers. And Microsoft has agreed to adopt Apptio's capabilities in parts of their organization. Our revenue performance continues to reflect growth in our high value recurring revenue base. Our ARR, after removing The Weather Company and security services, is now $13.9 billion, up over 8% since last year.

Transaction processing, with its strong base of recurring revenue, delivered revenue growth of 4%. Clients continue to value this portfolio of mission-critical software, supporting growing workloads on our hardware platforms. And there's an increasing interest in generative AI application modernization capabilities, like watsonx Code Assistant for Z. Software segment profit was up 80 basis points, while absorbing both key investments in innovation and about a point of currency impact in the quarter.

We continue to deliver operating leverage, driven by our revenue performance this quarter. Our consulting revenue was up 2%. We continue to see clients prioritizing large data and technology transformation projects focused on driving productivity with AI and analytics. These results reflect the organic performance of our business.

Solid demand for our offerings led to signings growth of 4%, our highest absolute first quarter signings in recent history, and our trailing 12-month book to bill ratio remains over 1.15. Our overall backlog remains healthy, up 7% year over year, and backlog erosion levels remained stable. At the same time, we saw both a lengthening of backlog duration driven by large-scale digital transformations and a reduced level of revenue realization in the quarter as clients tighten discretionary spending. Contributing to growth across the business this quarter, our strategic partnerships continue to make up over 40% of our consulting revenue with both AWS and Azure practices growing double digits.

Additionally, our Red Hat practice grew revenue double digits. Expanding upon our partnerships, we are leveraging Microsoft Copilot to drive productivity for our clients. Just as we quickly ramped a meaningful book of business around Red Hat to address the hybrid cloud opportunity, we are ahead of pace at this stage with our generative AI book of business. Turning to our lines of business, business transformation revenue grew 3%, led by supply chain and finance transformations.

Customer experience transformations also contributed to growth. Technology consulting revenue was also up 3%, with double-digit growth in cloud monetization projects. And both strategic partnerships and Red Hat engagements delivered double-digit growth. Application operations revenue declined, reflecting weakness in on-prem custom application management projects, partially offset by strength in cloud-based application management offerings.

Moving to consulting profit, we delivered over 8% of segment profit margin, which is flat year to year. Our segment profit margin was impacted by about a point of currency, offsetting improvements in pricing and productivity actions we have taken. Moving to infrastructure, revenue grew, reflecting growth in hybrid infrastructure of 6% and declines in infrastructure support of 7%. Within hybrid infrastructure, growth was broad-based with strong demand from our hardware offerings across IBM Z, power, and storage.

In IBM Z, revenue was up 5% in the eighth quarter of z16 product availability. Now two years in, this product cycle continues to resonate with clients and surpass z15 revenue performance. IBM Z is uniquely positioned for AI, with the first processor design with on-chip acceleration for real-time AI inferencing. In fact, we're working with over 100 clients on the application of AI on z16.

Use cases range from fraud detection, to anti-money laundering, to anomaly detection. This remains an enduring platform, driving not just hardware adoption, but also related software, storage, and services. Distributed infrastructure delivered 7% revenue growth, which strengthened both power and storage. Power performance was fueled by demand for data-intensive workloads.

Storage delivered strong double-digit revenue growth, including demand for high-end storage tied to the z16 cycle. And clients are also looking to our storage offerings for data curation, model building, and fine-tuning in support of generative AI. Looking at infrastructure profit, we deliver both gross profit and segment profit margin expansion. Segment profit margin expanded 20 basis points in the quarter, reflecting benefits from productivity while absorbing about a point of impact from currency.

Now, let me bring it back to the IBM level to wrap up. More than two years into our midterm model, we are a more focused business that has delivered sustained revenue and free cash flow growth. Over this time, we've continued to invest organically and inorganically, bring new products and innovation to market, expand our ecosystem, and drive productivity across our business. Our first quarter performance is another proof point of this progress with constant currency revenue growth, operating gross margin, and operating pre-tax margin expansion, and the strongest first quarter free cash flow in many years.

Looking to the full year of 2024, we are holding our view on our two primary metrics, revenue and free cash flow. We see full year constant currency revenue growth in line with our mid single-digit model, still prudently at the low end. And for free cash flow, we expect to generate about $12 billion, driven primarily by growth and adjusted EBITDA. On the segments, in software, we had a solid start to the year and continue to expect growth slightly above the high end of our mid single-digit model.

In consulting, we continue to see strong demand for digital transformations, though, as I said, we are seeing some pressure on smaller, more discretionary projects. We now see mid single-digit revenue growth in consulting with acceleration. throughout the year. Given our ongoing productivity initiatives and investment in innovation, we expect to see about a point a segment profit margin expansion in both of these segments.

And in infrastructure, given product cycle dynamics, we expect revenue to decline, driving about a half a point impact to our overall growth. Given IBM Z cycle dynamics, we expect segment profit margin to be lower year over year. With these segment dynamics, we continue to expect IBM's operating pre-tax margin to expand by about a half a point year to year, consistent with our view 90 days ago. And we are maintaining our view of operating tax for the year to be consistent with last year in the mid teens range.

We took a workforce rebalancing charge this quarter. And as I mentioned 90 days ago, we continue to see the overall amount this year consistent with last year. We expect this to pay back by the end of the year. On currency, given the strengthening of the dollar, we now expect a 150 to 200 basis-point impact to revenue growth for the year, which is about one point worse than 90 days ago.

For the second quarter, I expect our constant currency revenue growth rate to be consistent with the full year. Our tax rate is expected to be in the high teens. And for profit, we expect the first half skew of net income will remain a couple of points ahead of the prior year. In closing, we are pleased with our performance to start the quarter.

We are positioned to grow revenue, expand operating profit margin, and grow free cash flow for the year. Arvind and I are now happy to take your questions. Olympia, let's get started.

Thank you, Jim. Before we begin the Q&A, I'd like to mention a couple of items. First, supplemental information is provided at the end of the presentation. And then second, as always, I'd ask you to refrain from multi-part questions.

Operator, let's please open it up for questions.

Questions & Answers:

Thank you. At this time, we'll begin the question-and-answer session of the conference. [Operator instructions] Our first question comes from Amit Daryanani with Evercore. Please state your question.

Amit Daryanani -- Evercore ISI -- Analyst

Thanks for taking my question. Good afternoon, everyone. I guess I was hoping you could talk a bit more on the consulting side of the business because revenues did decelerate rather notably in March quarter. But I think on the other side, your AI-centric backlog at over a billion dollars is doing extremely well.

So, I'm hoping you could touch on the near-term side. You know, what are you hearing from your customers? What are they telling you on the duration of this pause? Because I think the expectation of mixing with digital growth would imply this business will recover rather quickly. So, I'd just love to get a sense on what are customers saying in consulting in terms of the duration of the pause. And then, longer term, what does the opportunity look like, given the AI-centric backlog appears a lot more robust versus what I think folks would have expected beyond '24? Thank you.

Thanks, Ahmed. I appreciate the question. Let's take a step back, because I think you're seeing some interesting dynamics in the consulting industry overall. And let's bifurcate it between how you ask the question.

Let's look at real demand that's being measured in bookings, and then let's talk about what's happening with the revenue realization. On demand, we continue to see and capitalize on solid demand in key areas around digital transformation, application modernization, and gen AI. Our signings in the quarter, up 4%, were the strongest absolute first quarter signings we've had as far back as I can go. We have a strong book-to-bill, over 1.15 on a trailing 12 months.

Our backlog dynamic is in a very strong position, 7% overall, with stable erosion. But our duration has been going up the last two quarters. It's been up a couple months. But let's talk about the underpinnings of what's driving demand because I think that's what's most important around the key growth focus areas.

You talked about gen AI. Gen AI for IBM, Arvind indicated, inception to date, over a billion-dollar book of business. Consulting in the first quarter, the book of business on gen AI was 2x all of last year. So, I think we're winning in the marketplace.

We're taking share. And by the way, we're well above that ramp we saw with regards to Red Hat. Our strategic partnerships still have great velocity. Book-to-bill, well north of 1.2.

Our Red Hat book of business is now $2.8 billion ARR around hybrid cloud. And we're seeing very nice acceleration in gen AI and digital transformation around core workflow use case areas of finance, supply chain, HR, and talent. So, I think in the key focus areas, our demand profile still continues to be good. Now, let's translate that to revenue.

Revenue, first of all, in the first quarter, as we indicated, was all organic. We wrapped on our acquisitions. We continue to operate a very disciplined M&A process, and we continue to be opportunistic. But that 2% revenue growth was all organic quarter to quarter.

Second, in this marketplace, you look at competition, we're taking share still. So, when you look at it, 90 days ago, we talked about the year. We talked about the year was going to play out accelerating throughout the year. Why? Because, one, we knew we had a strong backlog and that backlog realization showed us that it was going to play out throughout the year with sequential improvement.

But second, Easter. Easter, we knew calendar was there, was at the end of March. That does impact a human capital-based business on the number of billing days. So, when you looked at first quarter, that backlog duration extending out a couple months, we also saw, though, less revenue backlog yield.

And that really played out if you look at our subsegments and application operations. That's centered around custom AMS applications, which, by the way, many of that, as you know quite well, is volume-based business. And that volume, like I said, backlog is stable overall. We're not losing the business.

That is moving out to the right. So, with all that said, what are we focused on? We're focused on capturing new client demand in areas around our key growth areas. Two, we're continuing to focus, and we are gaining share in the marketplace. Three, we're driving that economic multiplier of consulting and technology across our hybrid cloud and AI platform.

So, in light of all that, that's why you see the mid single-digit growth. I think that's prudent, just given what every other consulting competitors come out with. By the way, that still drives 1.5 points of growth to IBM for the full year. And as I stated earlier, we see an accelerated growth profile as we move through the year.

Operator, next question.

The next question comes from Wamsi Mohan with Bank of America. Please state your question.

Wamsi Mohan -- Bank of America Merrill Lynch -- Analyst

Yes, thank you. Arvind, we'd love to get a little bit more of sort of a macro demand backdrop. I mean, I know Jim mentioned the heightened discretionary spending in some areas. How do you think about the risk of that sort of filtering more broadly as you go through the course of the year, especially given your guidance calls for an accelerating trend here? And if I could quickly, Jim, the synergies relative to HashiCorp on the cost side, is there any way you can dimensionalize that, given that, you know, when you're defining accretion on EBITDA basis? I get that, but can you also help on the net income basis or from a free cash flow, how much it might be dilutive in year one and decretive on year two? Thank you so much.

Thanks, Wamsi. Let me address your part about the demand profile globally. Look, if I look at where we are right now and where we project for the rest of the year, demand is actually quite strong. I would put it as very similar to 2023.

This is backed up by IMF GDP estimates, which are now north of 3% for the global business. If I look at it by geography, Japan remains very strong. I think that they are taking this opportunity to refresh the technology across their enterprise and government base. We look at South Asia, extremely strong, even the Middle East, UAE, Saudi, very strong.

Europe has remained consistent to last year, North and South America. So, on a geography basis, we're seeing very, very strong demand. Now, interest rates are higher than people were expecting. I think we should acknowledge that.

That means you get two effects going on. One, there is even stronger demand for software and infrastructure because people believe technology helps you in those environments and helps in an environment of increased labor costs and increased supply chain costs. Then, when you look at the discretionary side, Jim answered this in the previous question, we are seeing a little bit. Not across the board, not in all of the offerings in consulting, but where there is a little bit of discretionary labor, that is where we sense that pressure.

What we are going to do is pivot into the areas around helping people become more productive, take more costs out, digital transformation, work with our partners where there is very strong demand in the market. And as you pivot there, we believe that our growth rate in consulting will continue to accelerate. So, I hope, Wamsi, that gave you a flavor on the demand vectors we have, both in software and infrastructure, and in consulting and on a geography basis. Jim, over to you for part two.

OK. Thank you. Thanks, Wamsi, for the question. As Arvind indicated in the prepared remarks, we couldn't be more excited about the powerful combination of HashiCorp with IBM and Red Hat together.

We talked about in the prepared remarks. We've been very disciplined in our set of criteria around M&A. And this fits strategically. It has tremendous synergistic value to our hybrid cloud AI portfolio, and it has an attractive financial return overall.

And Hashi meets all three. One, it's a higher revenue growth profile company, so it accelerates IBM's revenue growth over time. Two, to your question, adjusted EBITDA, accretive in the first twelve months. And three, levered free cash flow accretive by the end of year two.

We think there are a potential for meaningful synergies overall. And when we look at it significant near-term operating efficiencies, cost energies and put that in perspective, we see this business profile moving from about a mid single-digit free cash flow margin business to about a 30% to 40% free cash flow margin business in a handful of years, free cash flow accretive by the end of year two. Now, the multiple we paid on that, fully supported by, one, the stand-alone revenue growth, and the cost synergies that come out. All of the IBM revenue synergies around Red Hat, around data security, around watsonx, around consulting and IT automation are all upside potential.

So, let's talk and conclude on the cost synergy. Cost synergies are where you would fully expect. IBM runs a global operations in 175 countries. We run a very disciplined, G&A efficient structure.

We see significant G&A operating efficiencies that we're going to go capitalize on. Second, running the playbook on how we expand it globally, our go-to-market model that we did with Red Hat. And that has both global incumbency, global scale, global breadth, and ecosystem leverage overall. And when you look at that, those significant synergies allow us to invest in product, R&D, innovation, and capability that's built into our case and also deliver our financial returns.

So, we feel pretty good about it.

Operator, let's go to the next question.

Our next question comes from Toni Sacconaghi with Bernstein. Please state your question.

Toni Sacconaghi -- AllianceBernstein -- Analyst

Yes, thank you and good afternoon. Jim, just to clarify, you've taken down your consulting outlook for the year from six to eight to five. I think that's about 60 basis points to company growth. Is there anything offsetting that, or is that just kind of rounding error in the low single-digit guidance? And then, my question is, maybe you could just elaborate a little bit more on the AI book of business, maybe just help clarify exactly how you define that.

I think it's both revenue recognized and your bookings and maybe partner bookings. Maybe you could just help define that. And last quarter, you said it doubled sequentially. This quarter, you just commented that it grew sequentially.

Maybe you could add a little color with that double digits or, you know, 20% or 30% or 40%. And at least when I do the math, it sounds like it's less than 5% of your consulting backlog, you know, AI backlog. Could you help dimension that as well? Thank you.

OK, Toni. Many questions here. Let me see if I can get through them quick. You look at full year.

Full year, as Arvind indicated, we're maintaining our guidance on our model, mid single digit. I think prudently just coming out of our first quarter, we've got a lot of work to do in the next three quarters, but I think prudently at the low end of that model. And by the way, that was very consistent with what we said 90 days ago. Now, let's unpack that.

When you take a look at full year, first of all, we are dealing with a stronger U.S. dollar. So we've given you a supplemental chart. Now, we've lost basically about a point more of headwind on currency.

But let's talk about the underlying fundamentals of our business across our segment because I think that's at the heart of your question. When you take a look at our growth at mid single digit, one, we said software would grow slightly above the high end of our mid single-digit model. We are very pleased with our software performance in the first quarter. We've accelerated growth from fourth quarter to 6% overall.

We have a very strong recurring revenue base. We accelerated Red Hat to a very strong 9% with our third consecutive quarter of midteen booking growth, which positions our business extremely well for double-digit growth for the full year. And we're getting nice scale leverage on acquisitions. Software for the year will deliver over three points of that IBM mid single digit by itself based on that Red Hat momentum, acquisitions, solid recurring revenue -- TP, by the way, nice start, up 4%, and new innovation like watsonx.

Consulting, we said, for the full year appropriately in light of the market and still gaining share would be mid single digits. That will deliver about a point and a half of growth to IBM. Why did we feel good about that? One, solid book-to-bill, winning in key focus areas, strategic partnerships, gen AI scale overall. But like first quarter, we're going to continue to monitor that backlog realization to see how that plays out.

But between software and consulting, over three points in software -- or about a point and a half, now you get the infrastructure. We started out well above what we expected here in the first quarter. Mainframe, eighth quarter in, grew 5%. Our distributed infrastructure, power, and storage, both grew double digits as we're capitalizing on distributed infrastructure and demand requirements for gen AI.

Full year, that's a little bit better than what we thought 90 days ago off our first start. So, we expect about a little bit less than a half a point impact to IBM. If we're on top of that, we executed the closure of The Weather Company, that would be about a half a point. So, that's kind of how we build up our full year overall.

So, AI book of business, I think you nailed it in your question. It's -- one, on a consulting perspective, it's our signings book of business overall. And on our software, it's our subscription, our SaaS, and perpetual licenses. Again, as you know, we offer clients flexibility on how they want to purchase that overall.

And consulting backlog, yes, 5% overall. I would tell you, let's put it in perspective. It's probably mid to high single digits. But we've got, give or take, about a $30 billion book of business on backlog with consulting.

So, coming from where we started less than nine months ago, I think that's a very good ramp. And let's put it in perspective. When we drove the hybrid cloud platform-centric play with consulting, which has done extremely well, over the first four quarters, we did a billion book of business. Right now, through less than three quarters, we're very damn close to that billion-dollar book of business, so --

Great. Operator, let's take the next question.

Our next question comes from Ben Reitzes with Melius Research. Please state your question.

Ben Reitzes -- Melius Research -- Analyst

Yeah, hey guys, thanks. I wanted to ask about Red Hat. You accelerated it to 9% in the quarter from 7%. What is your confidence level you get to the midteens, which kind of equals your bookings growth? So -- and then, on Red Hat, the follow-up would be how much can HashiCorp augment that growth rate? And what do you -- can you clarify the synergies a little bit more between Red Hat and Hashi? And, you know, was Hashi needed to help grow Red Hat, or is it a bonus? How do you see that? Thanks very much.

Ben, let me take the first part of those questions. We are very, very pleased with Red Hat. If I look at Red Hat now, we have had midteen or better bookings growth for the last three quarters, third quarter, fourth quarter, and first quarter. That, combined with the growth we are seeing in OpenShift, as well as in both Ansible and RHEL, OpenShift growing almost 40% gives us a lot of confidence.

So bookings growth plus OpenShift plus what we're seeing in the revenue now at 9% tells us that we should see that Red Hat growth continue or accelerate through the year. Two, let me just address a macro point. Hashi is a nice ad for the Red Hat portfolio, but it's not inside Red Hat. Let's just be clear.

So, when we talk about Red Hat growth numbers of nine and accelerating, that is Red Hat as is. Hashi will be measured in software, but in IBM software, not in Red Hat. Where the synergy comes is we believe there will be added demand because of a combined portfolio is more interesting. We think even more clients will talk to us.

That is how Hashi will help Red Hat. It's not that the Hashi revenue counts at all for the numbers we just mentioned. So, we kind of want to be clear on that. Hashi to us is an accelerant for IBM strategy and for software strategy.

And Hashi helps in being offensive in terms of giving us an overall better portfolio so even more clients want to do business with us in the environments they're going to. That's kind of how it's pitched. And people know Hashi really well for their infrastructure management, but the security pieces of Hashi are also very, very interesting and really important as people navigate these very complex environments with all the worries about people losing secrets and keys. And that's resulting in ransomware or hacking attacks.

That's kind of how I would paint the picture on that side.

Yeah, I would just add one other point, Ben, as you and I and many of the investors have talked about since first quarter earnings, you know, we've kind of bifurcated this business when we saw the slowdown happened in second half last year between our subscription-based business within Red Hat versus our consumption-based services and offerings, the former being about 80% of our portfolio, the latter being about 20%. If you look at first quarter, as Arvind indicated, we're very pleased. Coming off of a two-plus point acceleration positions us extremely well, even more confident in that double digit for the year. But the reason why we're even more confident is that 80% of that portfolio, that subscription business, we accelerated 3 points quarter to quarter in revenue, and we were above double digits.

On the consumption base, we finally saw stabilization. We didn't see acceleration. We saw stabilization. But remember, we start wrapping on that in the second half, so that provides us a tailwind on the second half.

But our subscription business today, the 80%, 3 points acceleration, double digit in the first quarter. All three major lines, broad-based, double-digit bookings, Red Hat, OpenShift, over 40% booking strength, $1.3 billion ARR book of business, grown 25-plus percent, Ansible taking share, we feel even more confident, as I said.

Operator, next question, please.

Our next question comes from Erik Woodring with Morgan Stanley. Please state your question.

Erik Woodring -- Morgan Stanley -- Analyst

Great, thank you very much for taking my question. Arvind, maybe this one's for you. If we include the software AG assets and now HashiCorp, -- I think you spent about $16 billion on acquisitions since your 2021 analyst day. You know, back then, you talked about kind of having 20 billion to 25 billion of M&A firepower you could leverage through 2024.

Just curious as we sit here today, you know, your willingness or desire to go after more M&A for the rest of this year? Would you be willing to go kind of above and beyond that total that you had laid out almost three years ago? And just as we think about the potential targets in the future, you know, where do you believe you have gaps that you can still fill within your portfolio? Thank you.

Erik, let me just maybe address some micro points in it, and I'll let Jim talk to some of the numbers here. We are going to remain incredibly disciplined on our M&A strategy. We kind of said it, but I just want to repeat. We got to find things that meet our strategy.

You've got to have some synergy opportunities at IBM, and it has to be financially accretive within the second year. So, if we find things that meet that, and we are committed, I'll say, to both our dividend and our investment grade ratings, then that is kind of the picture we go in. Now, within that, we believe we have some level of flexibility, and that is what we will operate in. So, that gives you a sense there.

By the way, one year [Inaudible] two, yet to come. We've got Software AG that we hope to close midyear and HashiCorp which will come near the end of the year. We also have to look at what is our overall internal dynamics of making sure that we can succeed on these businesses as we proceed down the path. We need to build consulting practices.

We need to have synergy plays and other parts of the portfolio, we have to enable our sales teams globally. As we say, a big part of our synergy is getting the amplification from our global footprint that is there to clients all around the world. Jim?

Yeah, Arvind, just building on your point, we are very confident in the capital structure of this company. We are committed to maintain a very solid investment-grade balance sheet. We are focused on debt leverage, obviously, but our primary capital allocation is to invest in our business, both organically, inorganically, and to maintain the attractive return to shareholder program with our dividend policy. So, with all that said, just to reaffirm what Arvin indicated, we will remain in the market, prudently evaluating complementary tuck-in opportunities that fit our M&A strategy.

And we got the capability of doing that.

Our next question comes from Brent Thill with Jefferies. Please state your question.

Brent Thill -- Jefferies -- Analyst

Arvind, on the software business, I mean, even ranging somewhere between 3% to 8%, 9% growth, you know, many have asked, it seems like the overall market's growing faster. What's it going to take to unlock this incredible portfolio you've built to effectively maybe monetize at the rate the industry's growing out? Is there something that's causing friction to unlock that true potential of the software business? Are we just being too focused on the short term? What do you think unlocks that value in getting you to your closer TAM of the growth?

As you can imagine, we are very, very focused on that question. If I just want to lay out a four-year trajectory, if you'd indulge me for just a minute, we began with a software portfolio that was, let's call it flat, would be a kind we are putting into about five years ago. We've gone from flat to, as we said, some volatility. But we are now seeing that we can be north of 6% for this year, whether you want to call that 6.5% or 7%, and we are very confident in that.

And we both do organic innovation and as we do M&A, we will find that that number will keep improving year over year. And I'm pointing to a very consistent four-year trajectory of having achieved that. By the way, within that we do find there are a couple of slow growing pieces, but they're incredibly important to our overall profile, both for in-compensate with clients, and for the cash flow that we produce, we would never expect our mainframe software, the TPS piece, to be growing in the high single digits or in double digits. So, as that mix also changes over time, then we find that we're going to get closer and closer, and we do want to, over time, get software to grow above where we are right now.

So, right now we're at the upper end of the mid single-digit model. I think you can conclude what would be the next step we will go at, and then we'll go from there.

Great. Operator next question.

Thank you. Our next question comes from Brian Essex with JPMorgan. Please state your question.

Brian Essex -- JPMorgan Chase and Company -- Analyst

Hi. Good afternoon, and thank you for taking the question. Another Red Hat one. Maybe, Arvind, if you could maybe give us a little bit of sense of, you know, what's going on in the pipeline there and whether or not you're seeing a substantial, you know, benefit in the Red Hat pipeline from the VMware acquisition, both on the consulting side as well as the software side.

Are you seeing a lot of migration? And how much of an opportunity you think might be there longer term to capture more share of that market?

Hi, Brian, great question. So, if we talk to some of the Red Hat dynamics, it's not so much directly related to VMware per se, but clients are all beginning to say -- they're asking the question, which is the platform they want to bet on for the next 10 to 20 years, on which they will write their applications, deploy them both in their own data centers, and on public clouds. We find an incredible amount of interest in that question. And as we have built out the Red Hat portfolio, not just for containers, because many people know OpenShift as a great container platform, but also for virtualization.

With both container-native virtualization and with the KVM hypervisor, we're finding a lot of interest around those topics. Then as we layer in, by the end of the year, the HashiCorp advantages of managing the infrastructure across all these environments, we do believe that that will be an accelerant to the Red Hat portfolio. So, first, RHEL has got its place as the primary place that people want to deploy; OpenShift, as a platform for both containers and virtualization; Ansible and HashiCorp are helping increase automation and reduce the complexity, we think all of this plays in. And, Brian, I think the best number is the midteen bookings growth on the subscription side of the business.

That speaks to the demand in terms of not only is there demand, but we are realizing that demand in the book of business that we are getting clients to commit to on Red Hat.

Great. Operator, let's take one last question.

Our next question comes from Matt Swanson with RBC Capital Markets. Please state your question.

Matt Swanson -- RBC Capital Markets -- Analyst

Yeah, thank you so much for taking our question. I think I might try a qualitative version of an earlier question around gen AI. And I think just we see so much of the news feed being around kind of the hype cycle and obviously growing a billion-dollar book of business shows you're monetizing it. Can you just talk about maybe the pain points that enterprises are looking to address when they first come to you, or when those consulting relationships start? Like how much of a plan is in place versus how much they're looking for you to, you know, kind of hold their hand in terms of this gen AI journey?

I think Matt, that's a great question. So, let me maybe take that, and I'll address it from both the consulting side and the software side. If we were 12 months ago, I would say that there was a lot of excitement and there was a lot of experimentation that was starting. And people were not thinking through what does this mean for my overall ROI, what are the economics running gen AI, how do I get the people changes done so that the ROI can actually be realized.

What is happening in all of my conversations this year in the first quarter of 2024 is a lot of people have woken up that those issues need to be addressed as well. So, when they talk to our consulting team, they are spending energy on, but can you help my people also do the transformation it takes? What is the change process through which you can recognize those things? They, then go to immediately asking. In these models, how expensive is it to run them? And they begin to do the math, "Wait, if I run this model just for this one business process, the infrastructure cost alone could be $300 million a year. That doesn't close the ROI.

Can I do it in a much more cost effective way," but an equally good answer. And that is where you begin to see some of the models that IBM has produced, our Granite series, play very strongly into helping them recognize their ROI by reducing the economics. And then lastly, and this is advice that I give to the C-suite usually and it resonates, is don't pick lots of little experiments. Try to pick a few use cases which can scale.

By scale, meaning that they actually do impact a large fraction of the employees or their client customers, and they begin to have a large impact in how business is done by either improving revenue or by making the enterprise significantly more productive. That kind of a conversation shift from simply, oh, this is a neat new tool, let me try it out to see what I can do, not what I should do, but what I can do. And I think that is a big change in terms of helping the organization scale. Let me now wrap up the call.

In the first quarter of 2024, we have executed on our strategy to deliver revenue growth and cash generation, allowing us to invest organically and through strategic acquisitions like HashiCorp. As always, we need to execute to capture the opportunity in front of us. I look forward to sharing our progress with you as we move through the rest of the year.

Thank you, Arvind. Operator, let me turn it back to you to close out the call.

Thank you. Thank you all for participating on today's call. The conference has now ended. [Operator signoff]

Duration: 0 minutes

Call participants:

More IBM analysis

All earnings call transcripts

This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.

The Motley Fool recommends International Business Machines. The Motley Fool has a disclosure policy .

Invest Smarter with The Motley Fool

Join over half a million premium members receiving….

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More

Motley Fool Investing Philosophy

  • #1 Buy 25+ Companies
  • #2 Hold Stocks for 5+ Years
  • #3 Add New Savings Regularly
  • #4 Hold Through Market Volatility
  • #5 Let Winners Run
  • #6 Target Long-Term Returns

Why do we invest this way? Learn More

Stocks Mentioned

International Business Machines Stock Quote

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

GettyImages-1533436109

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/29/2024.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Calculated by Time-Weighted Return since 2002. Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns.

Chart Showing the Cumulative Growth of a $10,000 Investment in Stock Advisor

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.

We've detected unusual activity from your computer network

To continue, please click the box below to let us know you're not a robot.

Why did this happen?

Please make sure your browser supports JavaScript and cookies and that you are not blocking them from loading. For more information you can review our Terms of Service and Cookie Policy .

For inquiries related to this message please contact our support team and provide the reference ID below.

microsoft earnings presentation

Microsoft announces quarterly earnings release date

' src=

  • Share on Facebook (opens new window)
  • Share on LinkedIn (opens new window)
  • Share on Twitter (opens new window)

REDMOND, Wash. — Oct. 12, 2021 — Microsoft Corp. will publish fiscal year 2022 first-quarter financial results after the close of the market on Tuesday, Oct. 26, 2021, on the Microsoft Investor Relations website at https://www.microsoft.com/en-us/Investor/ . A live webcast of the earnings conference call will be made available at 2:30 p.m. Pacific Time.

Microsoft (Nasdaq “MSFT” @microsoft) enables digital transformation for the era of an intelligent cloud and an intelligent edge. Its mission is to empower every person and every organization on the planet to achieve more.

For more information, financial analysts and investors only:

Investor Relations, Microsoft, (425) 706-4400

For more information, press only:

Microsoft Media Relations, WE Communications, (425) 638-7777, [email protected]

Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at https://news.microsoft.com . Web links, telephone numbers, and titles were correct at time of publication, but may since have changed. Shareholder and financial information is available at http://www.microsoft.com/en-us/investor .

Related Posts

Trustworthy and Responsible AI Network expands to help European healthcare organizations enhance the quality, safety and trustworthiness of AI in health

Microsoft announces quarterly dividend

Microsoft to help rural hospitals defend against rising cybersecurity attacks

Hitachi and Microsoft enter milestone agreement to accelerate business and social innovation with generative AI

Microsoft and G42 announce $1 billion comprehensive digital ecosystem initiative for Kenya

  • Check us out on RSS

Share this page:

Facebook

IMAGES

  1. Microsoft Rises: Earnings Spotlight

    microsoft earnings presentation

  2. Microsoft Corporation 2020 Q1

    microsoft earnings presentation

  3. Microsoft Corporation 2020 Q3

    microsoft earnings presentation

  4. Microsoft Earnings Highlights

    microsoft earnings presentation

  5. Microsoft's Record Earnings

    microsoft earnings presentation

  6. Microsoft Earnings: What to Look for from MSFT

    microsoft earnings presentation

COMMENTS

  1. FY24 Q3

    Earnings Release FY24 Q3. Microsoft Cloud Strength Fuels Third Quarter Results. REDMOND, Wash. — April 25, 2024 — Microsoft Corp. today announced the following results for the quarter ended March 31, 2024, as compared to the corresponding period of last fiscal year: · Revenue was $61.9 billion and increased 17%.

  2. Microsoft Investor Relations

    Investor Service. Direct Stock Purchase and Dividend Reinvestment Program. Electronic Delivery Enrollment Form. Frequently Asked Questions. Email Alert. This Investor Relations site contains information about Microsoft Corporation and provides information about the business relevant to shareholders, potential investors, and financial analysts.

  3. Microsoft Investor Relations

    Microsoft Fiscal Year 2022 Second Quarter Earnings Conference Call. Satya Nadella, Chairman and CEO and Amy Hood, EVP & CFO. Webcast Event Website PowerPoint Transcript. January 18, 2022 6:00 AM - PT.

  4. FY22 Q4

    Earnings Release FY22 Q4. Microsoft Cloud Strength Drives Fourth Quarter Results. REDMOND, Wash. — July 26, 2022 — Microsoft Corp. today announced the following results for the quarter ended June 30, 2022, as compared to the corresponding period of last fiscal year: · Revenue was $51.9 billion and increased 12% (up 16% in constant currency)

  5. FY21 Q4

    Earnings Release FY21 Q4. Microsoft Cloud Strength Fuels Fourth Quarter Results. REDMOND, Wash. — July 27, 2021 — Microsoft Corp. today announced the following results for the quarter ended June 30, 2021, as compared to the corresponding period of last fiscal year: · Revenue was $46.2 billion and increased 21%.

  6. FY21 Q2

    Microsoft Cloud Strength Drives Second Quarter Results . REDMOND, Wash. — January 26, 2021 — Microsoft Corp. today announced the following results for the quarter ended December 31, 2020, ... · Diluted earnings per share was $2.03 and increased 34% "What we have witnessed over the past year is the dawn of a second wave of digital ...

  7. FY21 Q3

    Earnings Release FY21 Q3. Microsoft Cloud Fuels Third Quarter Results. REDMOND, Wash. — April 27, 2021 — Microsoft Corp. today announced the following results for the quarter ended March 31, 2021, as compared to the corresponding period of last fiscal year: · Revenue was $41.7 billion and increased 19%.

  8. Microsoft earnings press release available on Investor Relations

    Microsoft (Nasdaq "MSFT" @microsoft) enables digital transformation for the era of an intelligent cloud and an intelligent edge. Its mission is to empower every person and every organization on the planet to achieve more. For more information, financial analysts and investors only: Investor Relations, Microsoft, (425) 706-4400

  9. Microsoft Corporation (MSFT) Q3 2024 Earnings Call Transcript

    Microsoft Corporation ( NASDAQ: MSFT) Q3 2024 Earnings Conference Call April 25, 2024 5:30 PM ET. Company Participants. Brett Iversen - Vice President-Investor Relations. Satya Nadella ...

  10. Microsoft Earnings Transcript (NASDAQ:MSFT)

    Presentation Operator Greetings and welcome to the Microsoft Fiscal Year 2024 Second Quarter Earnings Conference Call. [Operator Instructions] I would now like to turn the conference over to your ...

  11. 3 Must-See Slides From Microsoft's Earnings

    Let's look at a few standout slides from that report. Image source: Getty Images. 1. Diversity. Image source: Microsoft investor presentation. Microsoft added $9 billion to its sales footprint in ...

  12. Microsoft Corporation (NASDAQ:MSFT) Q3 2024 Earnings Call Transcript

    On the Microsoft Investor Relations website, you can find our earnings press release and financial summary slide deck, which is intended to supplement our prepared remarks during today's call and ...

  13. What You Need To Know Ahead of Microsoft's Earnings Report

    Net income is expected to be $21.1 billion, a decline from $21.87 billion last quarter but an increase from $18.3 billion in the prior-year quarter. Earnings per share (EPS) are projected at $2.83 ...

  14. Microsoft Corporation 2023 Q2

    Q2: 2023-01-24 Earnings Summary. EPS of $2.32 beats by $0.00 | Revenue of $52.75B (1.97% Y/Y) misses by $409.46M. The following slide deck was published by Microsoft Corporation in conjunction ...

  15. Microsoft Earnings: What to Look For From MSFT

    Microsoft Earnings History. The stock sank after Microsoft reported financial results for Q3 FY 2021 despite beating analysts' earnings and revenue estimates. Adjusted EPS rose 39.4% compared to ...

  16. Microsoft (MSFT) Q4 2023 Earnings Call Transcript

    Microsoft (MSFT 0.22%) Q4 2023 Earnings Call Jul 25, 2023, 5:30 p.m. ET. Contents: ... A question-and-answer session will follow the formal presentation. [Operator instructions] As a reminder ...

  17. Microsoft Corporation 2022 Q4

    Microsoft Corporation 2022 Q4 - Results - Earnings Call Presentation. Jul. 26, 2022 8:43 PM ET Microsoft Corporation (MSFT) Stock 1 Comment. 2 Likes. SA Transcripts. 147.35K Follower s. The ...

  18. Microsoft earnings call: What can we expect from MSFT's Q2 report

    Microsoft's year-on-year growth. Wall Street analysts forecast Microsoft will report adjusted earnings per share (EPS) of $2.78 on revenue of $61.1 billion for the quarter. This would represent ...

  19. Microsoft Corporation (MSFT) Q3 2023 Earnings Call Transcript

    SA Transcripts. 147.41K Follower s. Microsoft Corporation ( NASDAQ: MSFT) Q3 2023 Earnings Conference Call April 25, 2023 5:30 PM ET. Company Participants. Brett Iversen - VP, IR. Satya Nadella ...

  20. Do Microsoft's (NASDAQ:MSFT) Earnings Warrant Your Attention?

    Microsoft shareholders can take confidence from the fact that EBIT margins are up from 41% to 45%, and revenue is growing. Ticking those two boxes is a good sign of growth, in our book.

  21. How to Present Survey Results

    Practice and Rehearse Your Presentation. When delivering presentations that share survey results, thorough practice and rehearsal is essential. You want to clearly articulate data points, build confidence in your presentation, and confirm that your presentation doesn't exceed any existing time constraints.

  22. Micron Technology Earnings Transcript (NASDAQ:MU)

    Presentation Operator Thank you for standing by, and welcome to Micron Technology's Fiscal Third Quarter 2024 Financial Results Conference Call. [Operator Instructions] As a reminder, today's ...

  23. Microsoft Corporation 2022 Q2

    Q2: 2022-01-25 Earnings Summary. EPS of $2.48 beats by $0.16 | Revenue of $51.73B (20.09% Y/Y) beats by $938.45M. The following slide deck was published by Microsoft Corporation in conjunction ...

  24. Microsoft announces quarterly earnings release date

    A live webcast of the earnings conference call will be made available at 2:30 p.m. Pacific Time. Microsoft (Nasdaq "MSFT" @microsoft) enables digital transformation for the era of an intelligent cloud and an intelligent edge. Its mission is to empower every person and every organization on the planet to achieve more.

  25. A Debate Cheat Sheet for Business

    Here's what to watch for: Core P.C.E., which excludes volatile food and fuel prices, is forecast to come in at 2.6 percent on an annualized basis. That would be 0.2 percentage points lower than ...

  26. International Business Machines (IBM) Q1 2024 Earnings Call Transcript

    International Business Machines (IBM-0.84%) Q1 2024 Earnings Call Apr 24, 2024, 5:00 p.m. ET. Contents: Prepared Remarks; Questions and Answers; Call Participants; Prepared Remarks: Operator ...

  27. Microsoft (MSFT) Q4 2023 Earnings Call Transcript

    Earnings per share was $2.69 and increased 21% and 23% in constant currency. In our largest quarter of the year, results exceeded expectations with focused execution by our sales and partner teams ...

  28. Netflix's Advertising Challenge: It Isn't Big Enough

    Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world

  29. Microsoft announces quarterly earnings release date

    A live webcast of the earnings conference call will be made available at 2:30 p.m. Pacific Time. Microsoft (Nasdaq "MSFT" @microsoft) enables digital transformation for the era of an intelligent cloud and an intelligent edge. Its mission is to empower every person and every organization on the planet to achieve more.