Microsoft (MSFT) is set to report Q2 (Dec) results today after the close with a call to follow at 5:30pm ET.

The FactSet consensus estimate for EPS is to grow 6% yr/yr to $3.11 and for revenue to grow 11% yr/yr to $68.87 bln.

Microsoft typically files an 8-K around 4:03-4:04 pm ET, followed by posting the results on their website.

Microsoft provides next quarter's revenue outlook during the earnings call, so keep an eye for that

DeepSeek AI:

There's significant interest in how Microsoft views the recent developments with DeepSeek AI, given their substantial investments in AI infrastructure.

Azure Performance:

Q1 Performance: Azure grew by 34% on a constant currency basis, slightly above the previous guidance of 33%.
Q2 Guidance: The guidance for Q2 was set at 31-32% growth, which disappointed some analysts.
Cloud Migration: Microsoft continues to see strong growth in this area with healthy consumption trends.
AI Contribution: AI services contributed about 12 percentage points to Azure's growth in Q1, expected to remain similar in Q2 due to capacity constraints.

TECHS:

In terms of what to expect, MSFT has reported EPS upside in 22 of the past 23 quarters. However, it posted just $0.01 EPS upside in JunQ after five consecutive double digit EPS beats. The stock has just been range bound staying in the $390-465 range for the past year.

It gapped lower on Monday following the DeepSeek news, but it has mostly recouped those losses since then.

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