Microsoft's results will look weakest in the unit containing Windows due to a continuing slump in PC shipments.Microsoft said during the quarter that it would use OpenAI's models to release a new version of Bing and enhance its Microsoft 365 productivity software.Satya Nadella, chairman and chief executive officer of Microsoft Corp., speaks during the virtual Meta Connect event in New York on Oct. 11, 2022.
Results are expected to be weakest in Microsoft's personal computing division, which includes Windows operating system licenses sold to PC makers, along with Xbox consoles and Surface devices. Research firm GartnerMicrosoft's Azure cloud business remains a bright spot for the company, but growth is slowing. Analysts surveyed by CNBC expect 26.5% growth from a year earlier, while analysts polled by StreetAccount predict 27.2% growth.
In the fiscal second quarter, revenue from Azure and other cloud services grew by 31%, down from 35% in the prior period. Investors have another reason to be excited about Azure, which has aligned itself with ChatGPT creator OpenAI.