Microsoft (MSFT) earnings Q2 2023

Microsoft CEO Satya Nadella speaks on the firm’s Ignite Highlight occasion in Seoul on Nov. 15, 2022. Nadella gave a keynote speech at an occasion hosted by the corporate’s Korean unit.SeongJoon Cho | Bloomberg | Getty ImagesMicrosoft will report fiscal second-quarter outcomes after the shut of standard buying and selling on Tuesday.Here is what analysts expect:Earnings: $2.30 per share, adjusted, in line with Refinitiv.Income: $52.96 billion, in line with Refinitiv.Gross sales progress is anticipated to return in at simply 2.3% 12 months over 12 months, which might be the weakest enlargement for Microsoft in any interval since 2016.The corporate faces issues throughout the board. When CEO Satya Nadella introduced 10,000 job cuts final week, he famous that shoppers in each business world wide have taken a extra cautious method due to recession issues.As of Monday’s shut, Microsoft shares had been down 18% over the previous 12 months, barely underperforming the Nasdaq.The expansion engine of Microsoft’s Clever Cloud unit is the Azure public cloud. In October, executives mentioned the corporate’s engineers had been busy serving to clients be extra environment friendly with their Azure infrastructure providers. Final week Nadella wrote that “we’re now seeing them optimize their digital spend to do extra with much less.”Microsoft’s Home windows enterprise, housed contained in the Extra Private Computing unit, is reckoning with a pullback within the PC market. Expertise business researcher Gartner estimated that throughout the fourth quarter of 2022 the PC enterprise had its slowest progress for the reason that firm began holding observe of the market within the mid-Nineteen Nineties.The third unit, Productiveness and Enterprise Processes, comprises the Microsoft 365 productiveness suite previously generally known as Workplace. In latest days some analysts have mentioned they anticipate slower progress in seats bought by enterprise clients.The choice to cut back headcount “reveals a dedication to margin protection regardless of top-line shakiness,” analysts at Raymond James wrote in a word to shoppers on Monday. They advocate shopping for Microsoft shares.Microsoft mentioned the layoffs, together with {hardware} lineup modifications and lease consolidation charges, will lead to a $1.2 billion cost and a adverse influence on earnings of 12 cents per share.WATCH: Long run, Microsoft has an enormous secular progress story, says Oppenheimer’s Horan