Microsoft Q2 earnings: Azure growth, lackluster guidance, Surface/Windows decline.
Microsoft recently released its second quarter earnings report, and the results were a mixed bag. Overall, the company beat analyst estimates and reported strong growth from its Azure cloud unit. However, Microsoft’s guidance for the upcoming quarter was lackluster and the company reported that new business growth had slowed in December.
The company’s Surface and Windows revenue tanked 39%, which was a major contributor to the company’s overall decline in revenue. This was primarily due to a decline in demand for PCs, which was partially offset by the growth of its cloud services.
Microsoft’s stock price rose slightly after the earnings report was released, however it was still down from the beginning of the year. The company’s stock was also one of the biggest movers in after-hours trading.
In addition to its financial performance, Microsoft also announced a number of new initiatives. These included the launch of its new Xbox Series X console, the expansion of its cloud services, and the introduction of new artificial intelligence tools.
Overall, Microsoft’s second quarter earnings report was a mixed bag. While the company beat analyst estimates and reported strong growth from its cloud services, its guidance for the upcoming quarter was lacklustre and its Surface and Windows revenue tanked. Nevertheless, the company’s stock price rose slightly after the report was released and it announced a number of new initiatives that could help drive future growth.