Microsoft Set to Reveal Azure Revenue in Dollars Amid AI Spending and Job Cuts

Microsoft is scheduled to release its fiscal first-quarter results after markets close on Wednesday, with investor attention centered on job cuts, cash flow, and spending tied to artificial intelligence infrastructure.

For the first time since 1998, the company will report results under two operating segments rather than three, having previously separated its Azure, Office and Windows businesses. It will also disclose Azure cloud revenue in dollar terms for the first time, with analysts polled by StreetAccount expecting roughly $32.32 billion, reflecting growth of more than 44%.

Microsoft has been expanding its artificial intelligence infrastructure and enhancing its product lineup while trying to maintain positive free cash flow, a contrast to some of its major cloud competitors. Rivals including Alphabet, Amazon and Meta have all reported negative free cash flow in recent quarters.

As of Tuesday's close, Microsoft's stock had risen nearly 10% so far this year, trailing the broader S&P 500 index, which has gained about 13% in the same period.

During the quarter, Microsoft disclosed plans to cut 4,800 jobs and later announced buyout offers for as many as 60,000 employees, as it works to balance heavy AI investment with cost discipline. Analysts expect capital expenditures and finance leases for the quarter to total around $50.67 billion.

The company also launched an AI implementation unit during the quarter and introduced a Copilot AI assistant with coding capabilities. Executives are set to discuss the results and provide guidance on a conference call beginning at 5:30 p.m. ET.