By Microsoft Corp. has exceeded both profit and revenue expectations for its most recent fiscal quarter, despite a drop in share value during after-hours trading. The company recorded a net income of $20.1 billion, or $2.69 per share, compared to $16.7 billion, or $2.23 per share, in the same period last year. Analysts had projected earnings of $2.55 per share.
Revenue for the quarter rose to $56.2 billion from $51.9 billion, surpassing analyst estimates of $55.5 billion.
The Intelligent Cloud segment, which encompasses Microsoft’s cloud-computing services, experienced significant growth of 15% to reach $24.0 billion, surpassing expectations of $23.8 billion. The segment’s growth rate was 17% when adjusted for currency fluctuations.
Microsoft achieved a 26% increase in revenue for Azure and other cloud services, or 27% in constant currency. This surpassed the company’s own forecast of 26-27% growth and the FactSet consensus of 27% growth.
Following the earnings report, Microsoft shares dipped by 2% in after-hours trading on Tuesday. The company’s full earnings forecast will be disclosed during the upcoming earnings call at 5:30 p.m. Eastern Time.
The productivity and business processes unit, which includes LinkedIn and various versions of Office, generated $18.3 billion in revenue, reflecting a growth of 10% year-over-year or 12% in constant currency. This outperformed analysts’ expectations of $18.1 billion.
However, the More Personal Computing segment, which encompasses Windows and Xbox content and services, saw a decline of 4% in revenue, reaching $13.9 billion. On a constant-currency basis, the decline was 3%. The FactSet consensus had projected revenue of $13.6 billion for this segment.
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