Microsoft Corporation (NASDAQ:MSFT) is in the spotlight Wednesday as the company is set to report third-quarter financial results after the market close.
- Microsoft shares are under pressure. What’s pulling MSFT shares down?
Microsoft Set to Report Q3 Earnings
Microsoft is expected to report earnings per share of $4.06 and revenue of $81.39 billion for the third quarter.
Microsoft previously projected Azure revenue growth between 37% and 38% in constant currency for the third-quarter quarter.
In the prior quarter, Microsoft reported revenue of $81.3 billion, representing a 17% year-over-year increase.
CEO Satya Nadella said during the company's second-quarter earnings call that Microsoft is "in the beginning phases of AI diffusion and its broad GDP impact," highlighting continued focus on artificial intelligence.
During the same second-quarter update, the company also pointed to infrastructure optimization efforts, focusing on improving efficiency through metrics such as "tokens per watt per dollar," alongside development of an AI-focused network connecting facilities in Atlanta and Wisconsin.
Separately, TD Cowen maintained a Buy rating on Microsoft with a $540 price target, noting changes to the company's amended partnership agreement with OpenAI could reduce revenue share payments and provide a more predictable operating outlook.
Microsoft Shares Remain Stagnant
MSFT Price Action: At the time of publication, Microsoft shares are trading 0.96% lower at $425.15, according to data from Benzinga Pro.
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