LIVE: Microsoft reports quarterly and full fiscal year earnings (MSFT)

  • Microsoft reports fourth-quarter and full fiscal year earnings after market close on Wednesday.
  • The report comes not long after Microsoft announced fewer than a thousand job cuts across its business, alongside layoffs of about 960 at the Microsoft-owned LinkedIn.
  • Microsoft has emerged as a strong player amid the pandemic, as the remote work boom drives usage of its Microsoft Teams chat app and Microsoft Azure cloud platform.
  • Visit Business Insider’s homepage for more stories.

Microsoft is set to report earnings for its fiscal fourth quarter and the full 2020 fiscal year earnings after market close on Wednesday.

Here’s what Wall Street is expecting from Microsoft for Q4 2020, according to FactSet:

  • Revenue: $36.43 billion.
  • Earnings: $1.36 per share on a GAAP basis

Microsoft typically makes its most significant changes around the time it transitions to a new fiscal year on July 1, and Wednesday’s earnings release should shed some light on what’s to come. Meanwhile, analysts expect Microsoft will report typically strong results, driven mostly by the company’s cloud business.

While the pandemic has created challenges for many companies, including the smaller partners Microsoft relies on to sell its software and services, the shift to remote work has been a boost to the overall company, as users turn to products like the Microsoft Teams chat app and the Microsoft Azure cloud. Wednesday’s earnings release will give insight into Microsoft’s position in the space.

The earnings report may also reveal more about the extent of recent cuts within the company. Microsoft last week cut a small number of jobs as it transitioned to the new fiscal year. One person familiar with the situation told Business Insider the cuts affected less than 1,000 jobs. Microsoft’s professional social network subsidiary LinkedIn on Tuesday announced plans to cut an additional 960 jobs.

Microsoft also made significant changes last month by announcing plans to shut down its video game streaming service would be shut down and plans to close of most of its retail stores. Microsoft has already said the retail store plans will result in a $450 million charge, but it’s unclear how the unwinding of Mixer may have affected the company’s financials.

Those moves, analysts say, signal CEO Satya Nadella’s strategy to ruthlessly prioritize Microsoft’s strengths and cut its losses in other areas. Analysts will be watching Wednesday’s earnings for signs about where the company may be planning further cuts.

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