Microsoft (MSFTMore) Second Quarter Results Announced After Tuesday’s bell, it largely underperformed analyst expectations for earnings and beat earnings per share.
Here are the report’s most important numbers, compiled by Bloomberg and compared to what analysts had expected from the quarter:
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Earnings: $52.7 billion vs. forecast $52.9 billion
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Adjusted EPS: $2.32 vs $2.30 expected
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Productivity and business processes: $17 billion vs. $16.8 billion forecast
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Intelligent cloud: $21.5 billion vs. expected $21.4 billion
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Other Personal Computing: $14.2 billion vs. expected $14.7 billion
Immediately after the news, Microsoft’s stock price jumped more than 4%.
Despite better earnings per share, Microsoft’s cloud business continued to slow in the fourth quarter. The company reports that its Intelligent Cloud segment grew his 18% in the fourth quarter, with Azure services growing 31%. This is down from Q2 last year, when Intelligent Cloud and Azure grew 26% and 46%, respectively.
Microsoft CEO Satya Nadella said in a statement: “We are committed to helping our customers use our platform and tools to do more with less today and innovate into the future of the new era of AI.”
Microsoft’s announcement follows news that the company has been working on a multi-billion dollar project for several years. Investing in OpenAI Trying to stand up well against competitors, including Amazon (AMZN) to Google (goog, Google).
The investment is expected to help Microsoft further differentiate its cloud offerings from competitors such as Amazon and Google. The company is also said to be bringing the technology to the Bing search engine. It’s a move that could threaten Google’s search dominance.
But last week, Microsoft laid off about 10,000 employees. The move comes as the company addresses his slowing PC sales. His Windows OEM revenue fell 39% year-over-year when Microsoft sold the operating system to his PC maker.
The company is also continuing efforts to acquire video game giant Activision Blizzard for $69 billion. So far, the Federal Trade Commission, the UK’s Competition and Markets Authority and the EU’s European Commission have either filed complaints or are working to stop the deal.
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