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 startups, brings together global technology leaders and entrepreneurs as a unit French unites behind a push for more technology investment in Paris.
Marlene Awaad | Bloomberg | Getty Images
Shares of Microsoft rose 5% in extended trading on Tuesday, after the company reported second-quarter tax gains that exceeded analysts’ expectations.
Here’s how the company did it:
- Earnings: $ 2.03 per share, adjusted, compared to $ 1.64 per share, as expected by analysts, according to Refinitiv.
- Income: $ 43.08 billion, compared to $ 40.18 billion, as expected by analysts, according to Refinitiv.
Microsoft’s revenue rose 17% year-on-year, down from 12% in the previous quarter, according to a statement.
Revenues from the Microsoft Intelligent Cloud business segment, which includes the public Azure cloud, server products such as Windows Server, GitHub and enterprise services, totaled $ 14.60 billion. It rose 23% year-over-year and over the consensus of $ 13.77 billion among analysts surveyed by FactSet.
Microsoft said Azure revenue has increased by 50%. Analysts had expected an increase of about 42%. Microsoft does not disclose Azure revenue in dollars.
The More Personal Computing segment, which includes Windows, games, devices and search advertising, generated revenue of $ 15.12 billion, up 14% and more than the FactSet consensus estimate of $ 13.47 billion. . Technology industry research firm Gartner estimates that PC deliveries, excluding Chromebooks, rose 10.7 percent in the quarter.
This quarter, Microsoft released Xbox Series X and $ 300 S $ 500 consoles, along with a small version of the Surface Laptop computer called the Surface Laptop Go. The company also said that part of its source code was accessed after the company detected malicious SolarWinds software in its environment.
In terms of guidance, analysts expect third-quarter tax revenue of $ 38.70 billion, which would represent an annualized increase of 10.5%.
On Tuesday, Microsoft shares closed at $ 232.33 per share, setting a new all-time high 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%.
The directors will discuss the results at a conference call with analysts starting at 5:30 p.m., Eastern Time.
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