Microsoft (MSFT) is set to report earnings for its fiscal first quarter on Wednesday, after disappointing artificial intelligence sales in the last quarter.
The tech giant is expected to report revenues of $64.57 billion for the first quarter of fiscal year 2025, according to analyst estimates compiled by FactSet (FDS). Microsoft’s Productivity and Business Processes unit is expected to report revenue of $23.6 billion, its Intelligent Cloud unit is expected to report $26.8 billion, and its Personal Computing unit is expected to report $14.1 billion in revenue for the quarter, according to estimates. The company is expected to report earnings per share, or EPS, of $3.11 for the first quarter, according to FactSet.
Microsoft’s revenue expectations are below the $64.7 billion it reported for the fourth quarter of fiscal year 2024. Despite beating Wall Street’s expectations, its shares fell after its Intelligent Cloud unit sales of $28.7 billion came in below expectations. Microsoft’s capital expenditures of $13.9 billion were up 55% year over year, and $200 million over analyst expectations.
Microsoft chief executive Satya Nadella received a $79.1 million payout during the last fiscal quarter — a 63% bump from the $48.5 million he received during the same quarter the previous year. However, Nadella took a pay cut to show “personal accountability” after multiple cybersecurity breaches hit the company this year, according to a letter to shareholders from the compensation committee.
Shares of the company were up almost 1.3% during mid-day trading on Friday. Microsoft’s stock is up around 16% so far this year.
In November, the company will make a public preview available for customers to build their own autonomous agents in Copilot Studio that can “understand the nature of your work and act on your behalf.” The company also announced 10 new autonomous agents for its enterprise platform, Dynamics 365. The new agents are designed for workers in “sales, service, finance, and supply chain,” but the company plans to develop more agents, it said. The 10 autonomous agents will become available for public preview later this year and into early 2025.