Microsoft Corp. posted beats across the board with its latest results Tuesday afternoon, calling out momentum in the cloud and traction with artificial intelligence.
Microsoft’s
MSFT,
Azure and other cloud-services businesses posted revenue growth of 28% on a constant-currency basis in the fiscal second quarter. Analysts expected Azure constant-currency revenue growth of 27% for the period.
Overall, Microsoft recorded $62.0 billion in revenue for its latest quarter, up from $52.7 billion a year earlier. Analysts were modeling $61.1 billion.
“By infusing AI across every layer of our tech stack, we’re winning new customers and helping drive new benefits and productivity gains across every sector,” Chief Executive Satya Nadella said in a release.
The company generated $19.2 billion in revenue from its productivity and business-processes segment, which houses Office. Analysts were modeling $18.6 billion.
Intelligent cloud revenue was up 20% to $25.9 billion, while the FactSet consensus was for $25.3 billion.
The More Personal Computing segment, which includes Xbox and Windows, saw revenue rise 19% to $16.9 billion and edging ahead of the consensus view, which was for $16.8 billion.
Microsoft typically offers an outlook on its earnings call.
For the latest quarter, Microsoft posted net income of $21.9 billion, or $2.93 a share, up from $16.4 billion, or $2.20, in the year-ago quarter. Earnings per share came in ahead of the consensus view, which was for $2.79.
Shares of Microsoft have risen 21% over the past three months, and they’re up 69% over a 12-month span.
See also: These 4 software stocks are ‘underloved.’ Here’s what could get them appreciated.
