In this Cloud Wars Minute, Bob Evans shares his expectations for Microsoft’s Q4 earnings results.
Highlights
00:50 — Powered by the rise in generative AI, Bob believes that Microsoft will blow past $30 billion in cloud revenue. “I would not be surprised if cloud revenue reached $31 billion.”
01:18 — In April, Microsoft CEO Satya Nadella raised the notion of a “new era of computing,” brought about by AI and optimized by the cloud. Last month, CFO Amy Hood stated that Microsoft’s “AI . . . will be the fastest business to reach $10 billion” that Microsoft has ever had.
02:01 — On July 25, the company will release its fiscal Q4 earnings results. Bob notes that this is always the biggest quarter for Microsoft. Another accelerator of this growth is the “AI boom.”
02:35 — Looking back to Microsoft’s Q3 earnings, the company’s cloud revenue was $28.5 billion, which grew 22%. For Q4, Bob predicts a total revenue of $30.6 billion, with a growth of 22%.
03:13 — “I don’t think right now we can overstate the impact of the whole GenAI revolution,” says Bob, as Microsoft is incorporating AI into all of its products and looking to use the technology as a means of developing entirely new business models.
