Overview

* Microsoft ( MSFT ) fiscal Q1 rev grows 18% yr/yr, beating analyst expectations, per LSEG data

* GAAP EPS for fiscal Q1 beats analyst expectations, reflecting robust operational performance

* Company's cloud and AI services drive strong growth in fiscal Q1

Outlook

* Company will provide forward-looking guidance during earnings conference call and webcast

Result Drivers

* CLOUD AND AI - Microsoft ( MSFT ) attributes Q1 growth to strong demand for its cloud and AI services, as noted by CEO Satya Nadella

* INVESTMENTS IN AI - Co continues to increase investments in AI to meet future opportunities, per CEO Satya Nadella

* CLOUD REVENUE - Microsoft Cloud revenue rose 26%, reflecting growing customer demand for its platform, per CFO Amy Hood

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q1 Beat $77.70 $75.32

Revenue bln bln (35

Analysts

)

Q1 $4.13

Adjusted

EPS

Q1 EPS Beat $3.72 $3.66

(36

Analysts

)

Q1 Net $27.70

Income bln

Q1 Cloud $49.10

Revenue bln

Q1 $30.90

Intellig bln

ent

Cloud

Revenue

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 61 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the software peer group is "buy"

* Wall Street's median 12-month price target for Microsoft Corp ( MSFT ) is $630.00, about 14% above its October 28 closing price of $542.07

* The stock recently traded at 33 times the next 12-month earnings vs. a P/E of 33 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)