Microsoft has recently impressed with strong business figures, captivating both analysts and investors. Analysts at Goldman Sachs especially highlight that Microsoft continues to offer significant entry opportunities for investors. This is particularly relevant for private investors, as Microsoft is part of the so-called “Magnificent Seven” – a group of seven US technology companies considered particularly high-growth and stable.
Key Success Factors
Outperformance of Expectations
In the first quarter of the fiscal year 2025, Microsoft significantly exceeded analysts’ expectations: earnings per share (EPS) reached $3.46 (forecast: $3.23), while revenue of $70.1 billion clearly surpassed the consensus of $68.53 billion. Following this, the stock rose to a new high.
Cloud and AI Business as Growth Drivers
The cloud business remains the cornerstone of success: Microsoft’s cloud revenue amounted to $42.4 billion, growing by 20–22% in constant currency. Notably, Azure AI Services contributed significantly to the overall results with a growth advantage of around 16 percentage points. CEO Satya Nadella emphasized the importance of cloud and AI technologies as essential inputs for companies to enhance their efficiency and growth.
Strong Competitive Position
Azure is one of the leading providers in the cloud computing sector – alongside Amazon Web Services (AWS) and Google Cloud – and recorded a revenue growth of 33% in the third quarter of the fiscal year. The brand also benefits from many IT experts rating Azure as the best value-for-money option.
Importance for Private Investors
Due to its robust finances, innovation potential in artificial intelligence (AI), and strong market position, Microsoft remains an attractive investment opportunity. Recent figures confirm this assessment:
- Stable Earnings: Repeated outperformance of forecasts signals high predictability.
- Growth Potential: Engagement in AI-based services provides additional momentum.
- Market-Leading Position: As part of the “Magnificent Seven”, Microsoft benefits from the trust of both institutional and private investors.
Outlook
Upcoming quarterly reports are also expected to deliver positive results; for instance, an EPS of around $3.37 is anticipated for the fourth quarter of the fiscal year. Thus, Microsoft remains a safe bet for long-term investors.
“Cloud and AI are the essential inputs for every company to increase output, reduce costs and accelerate growth.”
— Satya Nadella (CEO of Microsoft)
This statement underscores the company’s strategic focus on future technologies – another argument for why analysts like those at Goldman Sachs continue to recommend entering.