Microsoft Q2 Earnings Surpass Wall Street View, Cloud Business Revenue Slows; Shares down 5%
(RTTNews) – Software giant Microsoft Corp. (MSFT) reported strong second-quarter results on Tuesday, with earnings and revenue beating Wall Street estimates. However, shares fell 5% after cloud business growth slowed.
Net income for the second quarter was $18.77 billion or $2.48 per share, compared to $15.46 billion or $2.03 per share in the same quarter last year. Twenty-nine analysts polled by Thomson Reuters had expected earnings of $2.31 a share for the quarter.
Microsoft said its second-quarter revenue rose 20% to $51.73 billion from $43.08 billion last year. Analysts had a consensus revenue estimate of $50.88 billion.
A key driver of the results was the growth in the cloud business. Due to the pandemic, the whole world has shifted to a work-from-home ecosystem, pushing the sale of cloud services for business.
“Strong business execution, represented by strong growth in reservations from Azure’s long-term commitments, drove Microsoft Cloud revenue to $22.1 billion, up 32% year-over-year. other,” said Amy Hood, executive vice president and chief financial officer of Microsoft.
Intelligent cloud services revenue reached $18.3 billion in the quarter, up 26% from a year ago, driven by 46% growth in revenue from Azure and other cloud services . However, revenue from Azure and other cloud services slowed from 50% growth in the previous quarter.
MSFT closed Tuesday’s trading at $288.49, down $7.88 or 2.66%, on the Nasdaq. The stock fell another $15.09 or 5.23% in after-hours trading.
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