Microsoft CEO Satya Nadella has set a goal of reaching $500 billion in revenue by 2030, as revealed in a court filing. The target represents a doubling of the company’s current size and is expected to be achieved through a growth-oriented strategy focused on Microsoft Cloud. Nadella also outlined plans for shareholder returns and emphasized the importance of outpacing competitors in the market. The Federal Trade Commission is currently trying to block Microsoft’s acquisition of Activision.
According to recently disclosed court documents, Microsoft CEO Satya Nadella shared his ambitious goal of achieving $500 billion in revenue by the fiscal year 2030. This target represents more than a doubling of the company’s current size.
Nadella’s comments, made in a memo to fellow executives and board members, emphasize an annual revenue growth rate of at least 10%. The memo became public during Microsoft’s federal court hearing regarding its pending acquisition of Activision Blizzard.
Microsoft, known as one of the world’s most valuable companies, typically refrains from issuing long-term financial projections. During its latest earnings call, the company provided guidance only for the current fiscal quarter.
In the disclosed memo, spanning 15 pages with an accompanying 21-page document, Nadella outlined a growth-oriented strategy aligned with the company’s enduring mission and culture, aiming to reach the 2030 goal. He also presented a forecast for shareholder returns, including dividends and buybacks.
Nadella wrote, “We believe this ambition and approach will help us deliver more than 10% annual returns to our shareholders over that timeframe.” The document, dated June 7, 2022, was released shortly before the end of the fiscal year.
The memo further outlined a “20/20” objective, involving 20% year-over-year revenue growth and 20% expansion in operating income for the 2022 fiscal year and subsequent years. In 2022, Microsoft achieved 18% top-line growth, generating $198.27 billion in revenue and a 19% increase in operating income.
While Nadella referred to Microsoft Plus as the product line targeting consumers, he emphasized that the primary driver of growth is Microsoft Cloud. This encompasses a comprehensive suite of products catering to commercial clients, including the Azure public cloud (competing with Amazon Web Services and Google Cloud), segments of Microsoft 365 productivity software, and sections of LinkedIn.
“Our priority is to maintain growth above the market rate to extend our lead over GCP and close the gap with AWS,” stated Nadella in the accompanying document.
Meanwhile, the Federal Trade Commission is attempting to impede Microsoft’s acquisition of game publisher Activision, which amounts to $68.7 billion.
