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Microsoft Fourth-Quarter Earnings Live Blog

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Microsoft investors will be far from alone in closely watching what the software giant has to share about software and cloud services demand amid growing worries about macro pressures.

Among analysts polled by FactSet, the consensus is for Microsoft to report June quarter (fiscal fourth quarter) revenue of $52.38 billion (up 13.5% annually) and GAAP EPS of $2.29 (up 6%) when it reports on Tuesday afternoon.

Microsoft typically provides quarterly sales guidance during its earnings call. For the September quarter, the company’s revenue consensus stands at $51.44 billion (also up 13.5% annually).

Eric Jhonsa, Real Money’s tech columnist, will be live-blogging Microsoft’s reports, which is expected after the close, along with an earnings call scheduled for 5:30 P.M. Eastern Time.

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4:18 PM ET: Hurting FQ4 EPS: Microsoft recorded $126M in operating expenses related to its decision to “significantly scale down” its Russian operations, and $113M in severance expenses as part of a “strategic realignment” of business groups.

Boosting EPS: $7.8B was spent on buybacks (even with FQ3).

4:13 PM ET: Perhaps helping the stock: Microsoft’s bookings numbers are pretty healthy. Commercial bookings rose 25% Y/Y in dollars and 35% in CC, and commercial remaining performance obligation (RPO – revenue under contract that hasn’t been recognized yet) rose 34% to $189B.

4:09 PM ET: Microsoft has pared its losses a bit: Shares are now down 1.5% AH. Expectations for this report were relatively low. But as a reminder, Microsoft shares its guidance on its earnings call (starts at 5:30 ET).

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4:08 PM ET: In its slide deck, Microsoft says its Windows OEM revenue (down 2% Y/Y) saw a $300M+ hit from China production shutdowns and a weakening PC market, and that weaker ad spend had a $100M+ impact.

4:06 PM ET: “Azure and other cloud services” revenue rose 40% Y/Y (46% in CC), which compares with 46% growth (49% in CC) in FQ3.

4:04 PM ET: Forex was a 4-point headwind to revenue growth: Revenue rose 12% Y/Y in dollars and 16% in constant currency.

4:02 PM ET: Results are out. FQ4 revenue of $51.87B is below a $52.38B consensus. GAAP EPS of $2.23 is below a $2.29 consensus.

Shares are down 2.7% AH.

3:59 PM ET: Microsoft shares have fallen 2.9% today, amid a 1.9% Nasdaq drop. In an apparent sign of how jittery many investors are about Microsoft’s report, a number of cloud software stocks have fallen more than 5%.

3:56 PM ET: Microsoft’s stock is down 25% YTD heading into its report, nearly matching the Nasdaq’s 26% drop. In early June, the company slightly lowered its June quarter guidance on account of forex swings (since then, the dollar has strengthened further against various foreign currencies).

3:53 PM ET: Given macro worries and some recent, cautious commentary from software firms such as ServiceNow, SAP and Qualtrics, both Microsoft’s numbers and demand commentary are bound to be closely watched. Along with its sales/EPS figures, the company’s commercial bookings/RPO numbers (typically shared in its slide deck) are bound to get attention.

3:48 PM ET: The FactSet consensus is for Microsoft to report FQ4 revenue of $52.38B and both GAAP and non-GAAP EPS of $2.29.

For FQ1, the consensus is for Microsoft to guide for its business segments to collectively post revenue of $51.44B.

3:46 PM ET: Hi, this is Eric Jhonsa. I’ll be live-blogging Microsoft’s earnings report and call.

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