Microsoft earnings were up 22% in its latest quarter.
Gerard Julien/AFP via Getty Images
shares were down about 5% in late-trading Tuesday, despite better-than-expected December quarter financial results.
The company’s fiscal second quarter, which ended Dec. 31, was driven by strength in the company’s PC business, but investors seem disappointed by performance in the company’s enterprise software segments, which only matched Wall Street estimates.
For the fiscal second quarter, Microsoft (ticker: MSFT) reported revenue of $51.7 billion, up 20% from a year ago, topping the $50 billion level for the first time. Earnings jumped 22% to $2.48 per share. Wall Street analysts had expected revenue of $50.9 billion and EPS of $2.31.
While Microsoft stock has tumbled about 15% this year, dragged down by the steep market correction, analysts had been generally upbeat heading into the software giant’s December quarter results.
“Digital technology is the most malleable resource at the world’s disposal to overcome constraints and reimagine everyday work and life,” Microsoft CEO Satya Nadella said in the earnings press release.
Revenue from the company’s Productivity and Business Processes segment, which includes Office and other applications was $15.9 billion, up 19%, in line with both the Wall Street consensus at $15.9 billion and the company’s guidance range of $15.7 billion to $15.95 billion. Revenue was up 14% for Office Commercial products and 15% for Office Consumer. LinkedIn revenue was up 37% from a year ago.
For the Intelligent Cloud segment, including Azure, revenue was $18.3 billion, up 26%, and likewise in line with Wall Street at $18.3 billion and guidance of between $18.1 billion and $18.35 billion. Azure revenue was up 46%, slowing from 50% growth one quarter earlier. Microsoft Cloud revenue,…