Microsoft’s revenue climbs by 17% in the fiscal second quarter

Written by: Wajeeh Khan
January 26, 2021
  • Microsoft’s revenue climbs by 17% in the fiscal second quarter.
  • The American multinational earned £1.48 per share in Q2.
  • Microsoft says Azure revenue saw a 50% annualised increase.

Microsoft Corp. (NASDAQ: MSFT) reported its financial results for the fiscal second quarter on Tuesday that topped analysts’ estimates for earnings and revenue.

Microsoft shares were reported more than 4% up in after-hours trading on Tuesday. Including the price action, the stock is now trading at a per-share price of £176.63. In comparison, it had slid to as low as £100 per share in the last week of March 2020 when the impact of COVID-19 was at its peak.

Microsoft’s Q2 financial results versus analysts’ estimates

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According to Refinitiv, experts had forecast the company to print £29.24 billion of revenue in the second quarter. Their estimate for per-share earnings was capped at £1.19. In its report on Tuesday, Microsoft beat both estimates posting a higher £31.35 billion of revenue in Q2 and £1.48 of earnings per share.

The technology giant saw a 17% annualised growth in its revenue in the recent quarter. In the prior quarter (Q1), the U.S. firm had recorded a narrower 12% growth in its revenue.

Microsoft said on Tuesday that its revenue from Intelligent Cloud came in at £10.63 billion in the second quarter that represents a 23% year over year growth. FactSet Consensus for revenue from this segment stood at a lower £10.02 billion.

Azure revenue, as per the American multinational, saw a 50% increase in Q2 versus a lower 42% growth expected. In an announcement last month, Microsoft said that it had partnered with Ernst and Young (EY) to expand the XBOX Enterprise blockchain platform.

Other prominent figures in Microsoft’s earnings report

Other prominent figures in Microsoft’s earnings report on Tuesday include £11 billion of revenue from its More Personal Computing segment or 14% higher than last year. Analysts, on the other hand, had forecast a lower £9.80 billion of revenue from this business in the recent quarter.

Microsoft generated £9.72 billion of revenue from its Productivity and Business Processes unit that also topped estimates and came in 13% higher than last year. For the fiscal third quarter, experts now forecast £28.16 billion of revenue for Microsoft that translates to a 10.5% growth as compared to the same quarter last year.

Microsoft performed largely upbeat in the stock market last year with an annual gain of roughly 40%. At the time of writing, the American multinational technology company is valued at £1.28 trillion and has a price to earnings ratio of 37.48.