Results from the company's heavy investments in key growth drivers Azure and ChatGPT will be in focus) is scheduled to release its quarterly earnings report on Tuesday, October 24, after market close. In recent days, the company has been at the center of attention, marked by several significant developments.
It is also interesting to note that Microsoft exceeded expectations in terms of both earnings and sales in its last quarterly publication.Beyond these headline figures, investors will be keeping a close eye on results from Azure, one of Microsoft's key growth drivers. Last quarter, Azure revenues posted a 26% year-on-year increase, marking the 5th consecutive quarter of deceleration.
The most important development was the announcement of Microsoft 365 Copilot, an artificial intelligence add-on to core software such as Word and Excel. Office accounts for around 24% of the tech giant's sales, and grew by 16% year-on-year in the previous quarter. In this regard, it's worth noting that analysts at Morgan Stanley recently expressed a similar view, declaring themselves"firmly convinced that a great opportunity lies ahead for Microsoft in generative AI and that the company is well positioned to seize this opportunity".