Microsoft stock rose as much as 6% in extended trading on Tuesday after the company reported fiscal second-quarter earnings Azure cloud revenue growth and quarterly revenue guidance that exceeded analysts’ expectations.
Here’s how the company did:
- Earnings: $2.03 per share, adjusted, vs. $1.64 per share as expected by analysts, according to Refinitiv.
- Revenue: $43.08 billion, vs. $40.18 billion as expected by analysts, according to Refinitiv.
Microsoft revenue grew 17% on an annualized basis, up from 12% growth in the prior quarter, according to a statement.
With respect to guidance, Microsoft sees $40.35 billion to $41.25 billion in fiscal third-quarter revenue. The middle of the range, at $40.8 billion, implies 16.5% growth and is higher than the $38.70 billion consensus among analysts polled by Refinitiv.
In the fiscal second quarter, revenue from Microsoft’s Intelligent Cloud business segment totaled $14.60 billion. The segment includes the Azure public cloud, server products such as Windows Server, GitHub and enterprise services. Revenue was up 23% year over year and above the $13.77 billion consensus among analysts polled by FactSet.
Microsoft said Azure revenue grew 50%. Analysts had expected around 42% growth. Microsoft doesn’t disclose Azure revenue in dollars.
The More Personal Computing segment, containing Windows, gaming, devices and search advertising, generated $15.12 billion in revenue, which was up 14% and came in higher than the $13.47 billion FactSet consensus estimate. Technology industry research company Gartner estimated that PC shipments, excluding Chromebooks, grew 10.7% in the quarter.
The segment’s operating margin narrowed to 34.6% from
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