$MSFT OUTLOOK:

Q3 Guide:
• Total Revenue: $67.7B-$68.7B (Est. $69.8B)
• Intelligent Cloud: $25.9B-$26.2B (Est. $27.0B)
• More Personal Computing: $12.4B-$12.8B (Est. $13.0B)
• Productivity & Business Processes: $29.4B-$29.7B (Est. $29.7B)
• COGS: $21.65B-$21.85B (Est. $22.3B)
• Operating Expenses: $16.4B-$16.5B (Est. $17.2B)
• Microsoft Cloud Gross Margin: ~69%

Key Takeaways:
• FX headwinds to reduce revenue growth by ~2pp across all segments.
• Microsoft 365 & Copilot subscription growth expected to stall.
• Commercial bookings expected to be flat YoY.
• Azure revenue growth forecasted at 31-32% (constant currency), slightly below expectations.
• Windows OEM & Devices revenue expected to decline low-to-mid single digits.
• More Personal Computing segment projected to see another quarter of weakness.

FY25 Full-Year Guide:
• Revenue expected to grow in double digits, but margins only slightly up YoY.
• Operating expenses guided for single-digit growth.
• Capex to increase sequentially as Microsoft expands AI and cloud infrastructure.
#MSFT