Microsoft (MSFT) guides Q4 revenue between USD 86.7-87.8bln (exp. 87.2bln), Q4 Capex to increase over USD 40bln

Microsoft's Q4 guidance showing revenue expectations slightly below estimates, coupled with significant capital expenditures, suggests mixed sentiment ahead.

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Microsoft (MSFT) guides Q4 revenue between USD 86.7-87.8bln (exp. 87.2bln), Q4 Capex to increase over USD 40bln

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Q4:

  • Operating expenses between USD 19.3-19.4bln
  • Intelligence Cloud Revenue between USD 37.95-38.25bln (exp. USD 37.4bln)
  • More personal computer revenue between USD 11.75-12.25bln (exp. USD 13.4bln)
  • Azure and Other cloud services revenue growth between 39-40% in CCY. 

2026:

  • Capex at around USD 190bln

2027:

  • Total revenue outlook is to grow in double digits.
Context

While their strong cloud performance, particularly in Intelligence Cloud, indicates growth potential, the lower-than-expected PC revenue raises concerns about demand in that segment. This duality could influence market expectations for tech sector performance and the broader equity indices.

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