Microsoft sees income develop 17% because the cloud enterprise accelerates


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 old event for startups, gathers global technology leaders and entrepreneurs as The French Establishment advocates more tech investment in Paris.

Marlene Awaad | Bloomberg | Getty Images

Microsoft stock rose 6% in expanded trading on Tuesday after the company reported second-quarter earnings and revenue growth on the Azure cloud that exceeded analysts' expectations.

This is how the company did it:

Merits: Adjusted for $ 2.03 per share versus $ 1.64 per share as analysts expected, Refinitiv said.Revenue: According to Refinitiv, $ 43.08 billion versus $ 40.18 billion as analysts expected.

Microsoft's annual revenue rose 17% from 12% in the previous quarter, according to a statement.

Microsoft's Intelligent Cloud business, which includes Azure public cloud, server products such as Windows Server, GitHub, and enterprise services, had revenues of $ 14.60 billion. That's 23% more than last year and more than the consensus of $ 13.77 billion among analysts surveyed by FactSet.

According to Microsoft, Azure sales increased by 50%. Analysts had expected growth of around 42%. Microsoft does not report Azure earnings in US dollars.

The More Personal Computing segment, which includes Windows, games, devices, and search advertising, had sales of $ 15.12 billion, up 14% and above the FactSet consensus estimate of $ 13.47 billion. Dollar lay. Tech industry research firm Gartner estimated PC shipments excluding Chromebooks increased 10.7% for the quarter.

The segment's operating margin decreased from 40% to 34.5% after the launch of two Xbox video game consoles in November. Analysts surveyed by FactSet had expected a margin of 26% for the segment.

The Productivity and Business Process segment, including Office, Dynamics, and LinkedIn, had sales of $ 13.35 billion, up 13% and more than the consensus of $ 12.89 billion.

In the quarter, Microsoft released $ 500 for Xbox Series X and $ 300 Series S consoles, as well as a small version of its Surface Laptop PC called the Surface Laptop Go. The company also said that some of its source code was accessed after the company discovered malicious SolarWinds software in its environment.

In terms of forecasts, analysts expect third-quarter revenue of $ 38.70 billion, an annualized growth of 10.5%. Execuitves give instructions for the call.

On Tuesday, Microsoft shares closed at $ 232.33 per share, setting a new all-time high for the first time since September. Excluding the after-hours move, Microsoft shares have risen around 5% since early 2021, while the S&P 500 index is up around 3%.

Executives will discuss the results in a conference call with analysts starting at 5:30 p.m. Easter time.

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Katherine Clark