- Microsoft announced quarterly revenue of $ 43.1 billion on Tuesday afternoon.
- Microsoft’s share price rose nearly 4% in after-hours trading after the release.
- Microsoft is not reporting revenue for its Azure cloud, but said revenue growth is up 50%.
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Microsoft posted earnings for the second quarter of its fiscal year after the market closed on Tuesday, significantly exceeding analysts’ expectations with $ 43.1 billion in revenue, up 17% from same quarter last year .
Here’s what the company reported:
- Returned: $ 43.1 billion, compared to $ 40.12 billion for Wall Street, according to Zacks. That’s up from $ 36.9 billion in the same quarter last year.
- Earnings: $ 2.03 per share versus Wall Street expectations of $ 1.64 per share.
- Net revenue: $ 15.5 billion, up 33%.
Microsoft’s stock price rose more than 5% in after-hours trading immediately after the release, to around $ 242 per share.
Microsoft reported quarterly revenue of $ 14.6 billion, up 23% from the same quarter last year, for its “Intelligent Cloud†business, which includes Azure, server products and enterprise and cloud services. Microsoft doesn’t publish revenue figures for Azure itself, but that revenue has grown by 50% year over year.
The “Productivity and Business Processes†segment – which includes the Teams chat app, Office products for businesses and customers, LinkedIn revenue, and Dynamics cloud products and services – reached $ 13.4 billion for the quarter, up 13%. Office 365 revenue from business customers was 21%, and Microsoft said it now has 47.5 million subscribers for its Microsoft 365 Consumer product.
And Microsoft said revenue for the business unit it calls “More Personal Computing,” which includes Windows, Search, Xbox and Surface, was $ 15.1 billion for the quarter, up 14 %. Xbox revenue rose 40%, which he attributed in part to an 86% increase in gaming hardware revenue after the release of its new Xbox Series X and Xbox Series S consoles. Surface hardware lineup, including the Surface Pro tablet / laptop hybrid, topped $ 2 billion in the quarter for the first time.
Microsoft’s overall cloud business activity, which includes its Microsoft Azure cloud computing business, the Microsoft 365 suite of cloud software applications and other services, reached $ 16.7 billion in revenue for quarter, up 34% from the same quarter last year.
Analysts typically monitor the continued growth of Microsoft’s cloud business, but the Microsoft Teams chat app is also growing in importance for business leaders and investors. Microsoft, when its results were last released in October, said Teams’ daily active users reached 115 million, but has so far provided no updates.
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