Microsoft (MSFT) earnings Q2 2022

Satya Nadella, chief executive officer of Microsoft Corp., speaks at Microsoft’s Build developer conference in San Francisco on March 30, 2016.

David Paul Morris | Bloomberg | Getty Images

Microsoft will report its fiscal second-quarter earnings after the closing bell on Tuesday.

Here’s what analysts are expecting:

  • Earnings: $2.31 per share, adjusted, as expected by analysts, according to Refinitiv.
  • Revenue: $50.88 billion as expected by analysts, according to Refinitiv.

After two consecutive quarters of revenue growth of over 20%, analysts expect a slowdown to 18% in the fiscal second quarter. That would bring the company back in line with its performance over the prior two and a half years.

The most notable deceleration is coming from the More Personal Computing segment, which includes gaming and the Windows operating system. Analysts polled by StreetAccount expect 9.5% growth from a year earlier, down from 14% growth in the prior quarter.

In October, Microsoft finance chief Amy Hood warned that the company would be coming up against a tough comparison because of the introduction of the Xbox Series X and Series S consoles last year. She said at the time that sales of consoles “will continue to be impacted by supply chain uncertainty.”

Microsoft shares have declined 13% since the start of the year, amid a broad selloff in technology stocks as investors brace for rising interest rates.

During the quarter, Microsoft released Windows 11 as the successor to Windows 10 and introduced the $249 Surface Laptop SE for school use that runs a special version of Windows 11. The company also announced the acquisition of Ally.io, whose software helps companies stay on top of key goals.

Microsoft announced plans earlier this month to acquire Activision Blizzard, the publisher behind Call of Duty, for $68.7 billion, the largest deal in the company’s 46-year history.

Guidance will be particularly important as investors look for indications of how supply chain constraints and inflation are factoring into future revenue and profit. Analysts polled by Refinitiv are expecting Microsoft to forecast $48.23 billion in revenue for the fiscal third quarter, implying 15.6% growth.

Executives will discuss the results and issue guidance on a webcast that will be broadcast over Microsoft’s Teams app starting at 5:30 p.m. ET.

This is breaking news. Please check back for updates.

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