Microsoft Corp. Chief Executive Officer Satya Nadella speaks at Microsoft’s Build developer conference in San Francisco March 30, 2016.
David Paul Morris | Bloomberg | Getty Images
Microsoft shares fell 5% in extended trading on Tuesday after the software maker reported second-quarter earnings that beat expectations.
Here’s how the company did it:
- Merits: $2.48 adjusted versus $2.31 per share as expected by analysts, according to Refinitiv.
- Revenue: $51.73 billion versus $50.88 billion expected by analysts, according to Refinitiv.
Revenue for the quarter rose 20% year over year, according to a statement, compared to nearly 22% growth in the previous quarter.
Microsoft shares are down 13% year-to-date amid a broad sell-off in technology stocks as investors brace for rising interest rates.
During the quarter, Microsoft released Windows 11 as the successor to Windows 10 and introduced the $249 Surface Laptop SE for school use, which runs a special version of Windows 11. The company also announced the acquisition of Ally.io, whose software helps companies stay on top of what matters most.
Microsoft earlier this month announced plans to acquire Call of Duty publisher Activision Blizzard for $68.7 billion, the largest deal in the company’s 46-year history.
Guidance will be particularly important as investors look for clues as to how supply chain constraints and inflation are feeding into future earnings and profits. Analysts polled by Refinitiv expect Microsoft to forecast revenue of $48.23 billion for the fiscal third quarter, representing growth of 15.6%.
Executives will discuss the findings and provide guidance in a webcast that will be streamed via Microsoft’s Teams app beginning at 5:30 p.m. ET.
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