Technology giant Microsoft Corporation MSFT reported second-quarter financial results after the market close Tuesday. Here are the key highlights.
What Happened: Microsoft reported second-quarter revenue of $52.7 billion, missing a Street estimate of $52.97 billion, according to data from Benzinga Pro.
Earnings per share were $2.32 in the second quarter, beating a Street estimate of $2.30.
Revenue for the Productivity and Business Processes segment was $17 billion, up 7% year-over-year. The segment saw Office 365 Commercial revenue growth of 11%.
Microsoft 365 Consumers subscribers totaled 63.2 million at the end of the quarter. Revenue for LinkedIn was up 10% year-over-year in the quarter. Dynamics 365 had revenue growth of 21% year-over-year in the second quarter.
Intelligent Cloud segment revenue was $21.5 billion, up 18% year-over-year in the second quarter. The company reported server products and cloud services revenue up 20% year-over-year, led by Azure revenue growth of 31% year-over-year.
More Personal Computing segment revenue was $14.2 billion in the second quarter, down 19% year-over-year. The segment saw Windows OEM revenue down 39% year-over-year and Xbox revenue down 12% year-over-year. Search and news advertising revenue was up 10% year-over-year in the second quarter.
“We are focused on operational excellence as we continue to invest to drive growth. Microsoft Cloud revenue was $27.1 billion, up 22% year-over-year as our commercial offerings continue to drive value for our customers,” Microsoft Chief Financial Officer Amy Hood said.
What’s Next: Along with quarterly earnings, Microsoft shared several comments on the growth of artificial intelligence, which comes after the tech giant made an additional investment into ChatGPT parent OpenAI.
“The next major wave of computing is being born, as the Microsoft Cloud turns the world’s most advanced AI models into a new computing platform,” Microsoft CEO Satya Nadella said. “We are committed to helping our customers use our platforms and tools to do more with less today and innovate for the future in the new era of AI.”
Microsoft said it will provide guidance on its earnings conference call.
MSFT Price Action: Microsoft shares are up 4% to $251.70 in after-hours trading Tuesday. Shares of Microsoft have traded between $213.43 and $315.95 over the last 52-weeks.
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