Microsoft guides on call: SepQ revenue above consensus; guides to Azure +45% CC; stock pops nearly 10% after hours (390.54 -2.81)
Outlook for Q1 (Sep):
- In Productivity and Business Processes, co expects revenue of $36.7-37.0 bln, or +11-12%.
- For Intelligent Cloud, it expects revenue of $40.95-41.25 bln, or +33-34%.
- In Azure, co expects Q1 (Sep) revenue growth to be +45% CC. Co sees customer demand continuing to exceed supply. Even with the strong close to Q4, co continues to expect 1H growth to accelerate. As a reminder, yr/yr Azure growth rates can vary quarter to quarter based on capacity, timing and contract mix. In its on-premises server business, co expects revenue to decline in the low to mid-single digits with ongoing customer shift to cloud offerings and the prior year comparable noted earlier.
- Co sees More Personal Computing revs at $12.2-12.7 bln as co continues to lap the strong prior year, comparable noted earlier and navigate complex PC market dynamics impacted by component prices and inventory levels.
Co guides to total company Q1 (Sep) revenue of $89.85-90.95 bln vs. $89.72 bln FactSet consensus.
Stock pops to $428.26, +9.7%. Investors appear happy with Azure guidance.