Microsoft’s stock rose as much as 6% on Tuesday after reporting fiscal second-quarter earnings and Azure cloud revenue growth.
Here’s how the company did:
- Earnings: According to Refinitive, $ 2.03 per share, adjusted, versus $ 1.64 per share expected by analysts.
- Revenue: According to Refinitive, $ 43.08 billion, versus $ 40.18 billion, according to analysts.
According to a statement, Microsoft’s revenue grew 17% year-on-year, 12% in the prior quarter.
Revenue from Microsoft’s Intelligent Cloud Business segment, including Azure Public Cloud, Windows products such as Server Products, GitHub and Enterprise Services, totaling $ 14.60 billion. This is a consensus among analysts provided by FactSet by over 23% year over and over $ 13.77 billion.
Microsoft said Azure revenue grew 50%. Analysts had expected an increase of around 42%. Microsoft does not disclose Azure revenue in dollars.
The more personal computing segment with Windows, gaming, devices and search advertising generated revenue of $ 15.12 billion, up 14% and exceeding the $ 13.47 billion FactSet consensus estimate. Technology industry research company Gartner estimated that PC shipments, excluding Chromebooks, rose 10.7% in the quarter.
After the introduction of two Xbox video-game consoles in November, the segment’s operating margin was narrowed from 40% to 34.6%. Analysts polled by FactSet expected a 26% margin from the segment.
The productivity and business processes segment, including Office, Dynamics and LinkedIn, generated $ 13.35 billion in revenue, up 13% and consensus of over $ 12.89 billion.
Microsoft released $ 500 Xbox Series X and $ 300 Series S consoles this quarter, along with a smaller version of its Surface Laptop PC called Surface Laptop Go. The company also stated that the company had accessed some of its source code after detecting malicious SolarWinds software in its environment.
Regarding the guidance, analysts expect $ 38.70 billion in fiscal third-quarter revenue, which would represent a 10.5% annual increase. Execuitves will issue guidance on the call.
Microsoft stock closed at $ 232.33 per share on Tuesday, posting a new all-time high for the first time since September. Excluding the after-hours move, Microsoft shares are up about 5% since the start of 2021, while the S&P 500 index is around 3%.
The executive will discuss the results when a conference is called with analysts starting at 5:30 pm Eastern time.
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