Satya Nadella, CEO of Microsoft Corp., speaks at the Viva Technology conference in Paris, France, on Thursday, May 24, 2018. Viva Tech, a three-year-old event for beginners, brings together global technology leaders and entrepreneurs as the French branch unite behind a push for more technological investment in Paris.
Marlene Awaad | Bloomberg | Getty Images
Microsoft shares rose 6% on Tuesday in extended trading after the company posted fiscal second-quarter earnings and growth in Azure clouds that exceeded analysts’ expectations.
Here’s how the business fared:
- Earnings: $ 2.03 per share, adjusted to $ 1.64 per share as expected by analysts, according to Refinitiv.
- Income: According to Refinitiv, $ 43.08 billion, compared to $ 40.18 billion, as expected by analysts.
According to Microsoft, Microsoft’s revenue grew by 17% year-on-year, compared to 12% in the previous quarter.
Revenue from Microsoft’s Intelligent Cloud business segment, which includes the Azure cloud, server products such as Windows Server, GitHub and enterprise services, is $ 14.60 billion. This is 23% higher than on an annualized basis and above the $ 13.77 billion consensus among analysts surveyed by FactSet.
Microsoft said Azure revenue rose 50%. Analysts expected about 42% growth. Microsoft does not disclose Azure revenue in dollars.
The More Personal Computers segment, which includes Windows, games, devices, and search advertising, generated $ 15.12 billion in revenue, up 14% from the $ 13.47 billion FactSet consensus estimate. Technology industry research firm Gartner estimates that PC shipments, excluding Chromebooks, grew 10.7% in the quarter.
During the quarter, Microsoft released $ 500 Xbox Series X and $ 300 Series S consoles, along with a smaller version of its Surface Laptop PC called the Surface Laptop Go. The company also said some of its source code was obtained after the malicious SolarWinds software was detected in its area.
In terms of guidance, analysts expect third-quarter fiscal revenue of $ 38.70 billion, which will represent annual growth of 10.5%.
On Tuesday, Microsoft’s share closed at $ 232.33 per share, setting a new record for the first time since September. Microsoft shares have risen about 5% since the beginning of 2021, while the S&P 500 index has risen about 3%.
Managers will discuss the outcome during a conference call with analysts starting at 5:30 p.m. Eastern time.
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