LIVE: Microsoft earnings

Microsoft CEO Satya NadellaBusiness Insider/Julie BortMicrosoft CEO Satya Nadella

Microsoft is due to report its first quarter earnings for fiscal year 2016 after the bell today.

Here’s what analysts are expecting:

  • EPS of $US0.59 a share.
  • Revenue of around $US21.09 billion.

Microsoft’s slow shift to the cloud and subscription-based services means that the company is probably in for yet another quarter of incremental growth.

Revenue is expected to come in around $US21.03 billion, a drop of 9% from $US23.20 billion last year, as Microsoft continues to cut its forecasts amidst a still-shrinking PC market.

That decline continues a trend seen last quarter, when revenue shrunk 5% from the previous year. Prior to that, Microsoft’s total revenue had been growing on an annualized basis since the Mar. 2014 quarter — and then, revenues only shrunk because of an accounting quirk.

The company is also changing how it reports results, splitting them into three units: Productivity and Business Processes (Office, mostly), More Personal Computing (Windows, Xbox, and Bing), and Intelligent Cloud (Windows Server, Azure, and other infrastructure products). Of those, Intelligent Cloud is the one most likely to show growth from last year.

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