Microsoft's second-quarter revenue guidance slightly beat expectations; capital expenditures to exceed $50 billion

TechFlow report, Oct. 29: Microsoft (MSFT.O) expects that after Azure's cloud business growth accelerated in the first fiscal quarter and exceeded the company's own guidance, growth in the second fiscal quarter will accelerate further. On a constant-currency basis, Azure revenue for the second fiscal quarter is expected to grow 49% to 50%, compared with 48% growth in the first fiscal quarter. Microsoft expects total revenue for the second fiscal quarter to reach $96.0 billion to $97.1 billion; Intelligent Agents and Infrastructure segment revenue to reach $80.1 billion to $80.7 billion; and Devices and Consumer segment revenue to reach $15.9 billion to $16.4 billion, with the segment covering Azure and Microsoft 365 businesses. Analysts surveyed by FactSet currently expect Microsoft's second fiscal quarter revenue to be $95.63 billion. Microsoft also expects second fiscal quarter capital expenditures to exceed $50 billion, underscoring the massive costs required to expand artificial intelligence infrastructure. (Jin10)

Source: TechFlow