What to watch for in Microsoft's Q4 results

Investors will watch for these three factors from the tech company's Q4 earnings report.

Microsoft logo before Q4 earnings report Source: Bloomberg

Microsoft’s Q4 earnings report on July 18 will be closely monitored by investors to see if the tech company will continue to beat expectations after its successful Q3 earnings report.

Analysts expect Microsoft Q4 earnings to increase

Microsoft's stock has outperformed throughout 2019 with year-to-year-growth of 36%. With its bullish run in the US stock market, Microsoft’s market capitalisation topped $1 trillion. Microsoft predicts its Q4 revenue will be in the range of $32.2 billion-$32.9 billion. That estimate falls in line with the Zachs’ Equity Research expectation of $32.73 billion, an increase of 8.8% from Microsoft's $30.6 billion Q3 revenue.

Cloud computing could continue to help Microsoft’s Q4 revenue

Microsoft's Q3 earnings were boosted by strong cloud computing revenue. Now the tech company hopes that its cloud computing division will increase Microsoft’s Q4 earnings. In its Q3 earnings, Microsoft’s cloud revenue was $9.6 billion, a surge of 41%. Investors will see if Microsoft’s successful cloud division can maintain the corporation’s revenue growth.

Partnership with Oracle could impact Microsoft's Q4 profits

Microsoft’s Q4 earnings from cloud technology could further increase after the corporation recently announced a partnership with Oracle. Microsoft’s Azure and Oracle’s Cloud will be connected so users can store data on both cloud services. The collaboration between the former rivals is likely meant to challenge Amazon’s Web Services. Scott Guthrie, Microsoft Cloud’s executive vice-president, touted the partnership between the tech companies in a statement.

‘With Oracle's enterprise expertise, this alliance is a natural choice for us as we [Microsoft] help our joint customers accelerate the migration of enterprise applications and databases to the public cloud,’ said Guthrie.

Investors will watch Microsoft’s Q4 earnings report to see if the tech company’s earnings and revenue will be helped by investment in cloud computing and strategic partnerships.


This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Bid
Offer
Updated
Change
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
China 300
-
-
-
-

Prices above are subject to our website terms and agreements. All share prices are delayed by at least 20 minutes. Prices are indicative only.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.