Satya Nadella, CEO of Microsoft Corp., speaks during the Viva Technology conference in Paris, France, on Thursday, May 24, 2018. Viva Tech, a three-year event for startups, brings together technology leaders and global entrepreneurs as the French establishment joins in driving more technological investment in Paris.
Marlene Awaad | Bloomberg | Getty Images
Shares of Microsoft rose 6% in extended operations on Tuesday after the company reported second-quarter tax gains and revenue growth in the Azure cloud that exceeded analysts ’expectations.
Here’s how the company did it:
- Earnings: $ 2.03 per share, adjusted, versus $ 1.64 per share, as analysts expected, according to Refinitiv.
- Income: $ 43.08 million, up from the $ 40.118 billion analysts expected, according to Refinitiv.
According to a statement, Microsoft’s revenue grew 17% annually, down from 12% in the previous quarter.
Revenue from Microsoft’s smart cloud business segment, which includes Azure’s public cloud, server products like Windows Server, GitHub, and enterprise services, totaled $ 1460 million. This is up 23% year-on-year and exceeds the $ 13.75 billion consensus among analysts surveyed by FactSet.
Microsoft said Azure’s revenue grew 50%. Analysts had expected growth of 42%. Microsoft does not disclose Azure’s revenue in dollars.
The most personal computing segment, which contains Windows advertising, games, devices, and search, generated revenue of $ 15.12 billion, up 14%, and surpassed the agreed-upon FactSet estimate of $ 13.47 million. Technology industry research firm Gartner estimated that PC shipments, excluding Chromebooks, grew 10.7% in the quarter.
During the quarter, Microsoft released $ 500 and $ 300 Series S consoles, along with a small version of its Surface laptop called the Surface Laptop Go. The company also said it had accessed some of its source code after the company detected SolarWinds malware in its environment.
In terms of guidance, analysts expect third-quarter tax revenue of $ 38.70 million, which would represent annualized growth of 10.5%.
Shares of Microsoft closed at $ 232.33 per share on Tuesday, setting a new all-time high for the first time since September. Microsoft shares have been up about 5% since the beginning of 2021, while the S&P 500 index is up about 3%.
Executives will discuss the results in a conference call with analysts starting at 5:30 p.m.
This is breaking news. Please check for updates again.
I’LL SEE: Cruise CEO: Microsoft is a very natural partnership
Nominations are open for 2021 CNBC Disruptor 50, a list of private companies that use innovative technology to become the next generation of large public companies. Present on Friday, Feb. 12 at 3 p.m. EST.