Satya Nadella, the CEO of Microsoft, revealed during a gathering of executives and board members at the White House that the company is aiming to achieve $500 billion in revenue by the 2030 fiscal year. This ambitious goal represents a doubling of the company’s current size.
Chris Kleponis | CNP | Bloomberg | Getty Images
In a memo that became public as part of Microsoft’s court hearing over its upcoming acquisition of Activision Blizzard, Nadella expressed his intention to achieve annual revenue growth of at least 10%.
Microsoft, known as one of the world’s most valuable companies, typically avoids making financial projections too far into the future. However, in this disclosure, Nadella outlined the company’s plan to reach its 2030 revenue target through a growth-oriented strategy aligned with its core mission and culture.
Additionally, Nadella provided a forecast for shareholder returns in the form of dividends and buybacks, aiming for annual returns of over 10% during this timeframe.
The CEO described a “20/20” target, which involves achieving 20% year-over-year revenue growth and 20% operating income expansion for the 2022 fiscal year and beyond. Microsoft nearly reached these goals in 2022 with 18% revenue growth and 19% operating income growth.
Nadella referenced Microsoft Plus as the label for consumer-focused products, but he emphasized that Microsoft Cloud, including Azure, Microsoft 365, and LinkedIn, is the primary driver of the company’s growth. They aim to maintain growth above market rates and close the gap with competitors like Amazon Web Services and Google Cloud.
The Federal Trade Commission is currently attempting to block Microsoft’s acquisition of Activision, which is valued at $68.7 billion.
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