Microsoft beats Q2 expectations with Azure, Intelligent Cloud revenue growth; announces 10,000 job cuts.
Microsoft (MSFT) recently posted better-than-expected second quarter earnings, with stable growth rates for its key cloud computing division. Overall group revenues rose 1.9% to $52.7 billion for the three months ending in December, Microsoft’s fiscal second quarter, coming in just shy of analysts’ estimates of a $52.97 billion tally. Microsoft’s bottom fell 12% to $16.4 billion while adjusted earnings fell 6.5% from last year to $2.32 per share, just ahead of the Street consensus forecast of $2.30 per share.
Microsoft’s cloud division, Azure, saw a 31% increase in revenue from the previous year, which was slightly lower than the mid to high 40-percent range seen earlier in the year. This can be attributed to companies pulling back on digital infrastructure spending and the increasing value of the dollar. Productivity and business division revenues rose 7% to $17 billion, Intelligent Cloud revenues were up 18% to $21.5 billion, and More Personal Computing revenues fell 19% to $14.2 billion.
In addition to the earnings report, Microsoft announced plans to cut around 5% of its global workforce, resulting in the loss of around 10,000 jobs and a 12 cent hit to December quarter earnings. This move is part of an effort to ‘align costs’ with customer demand and boost investment in areas such as AI and other advanced technologies.
Microsoft CEO Satya Nadella commented on the earnings report, saying, “The next major wave of computing is being born, as the Microsoft Cloud turns the world’s most advanced AI models into a new computing platform. We are committed to helping our customers use our platforms and tools to do more with less today and innovate for the future in the new era of AI.”
In response to the earnings report, Microsoft shares were marked 4.5% higher in after-hours trading. This indicates a Wednesday opening bell price of $252.36 each. Microsoft’s job cuts follow similar moves from Amazon and Meta Platforms late last year.
Microsoft (MSFT) recently posted better-than-expected second quarter earnings, with stable growth rates for its key cloud computing division. Overall group revenues rose 1.9% to $52.7 billion for the three months ending in December, Microsoft’s fiscal second quarter, coming in just shy of analysts’ estimates of a $52.97 billion tally. Microsoft’s bottom fell 12% to $16.4 billion while adjusted earnings fell 6.5% from last year to $2.32 per share, just ahead of the Street consensus forecast of $2.30 per share.
Microsoft’s cloud division, Azure, saw a 31% increase in revenue from the previous year, which was slightly lower than the mid to high 40-percent range seen earlier in the year. This can be attributed to companies pulling back on digital infrastructure spending and the increasing value of the dollar. Productivity and business division revenues rose 7% to $17 billion, Intelligent Cloud revenues were up 18% to $21.5 billion, and More Personal Computing revenues fell 19% to $14.2 billion.
In addition to the earnings report, Microsoft announced plans to cut around 5% of its global workforce, resulting in the loss of around 10,000 jobs and a 12 cent hit to December quarter earnings. This move is part of an effort to ‘align costs’ with customer demand and boost investment in areas such as AI and other advanced technologies.
Microsoft CEO Satya Nadella commented on the earnings report, saying, “The next major wave of computing is being born, as the Microsoft Cloud turns the world’s most advanced AI models into a new computing platform. We are committed to helping our customers use our platforms and tools to do more with less today and innovate for the future in the new era of AI.”
Microsoft (MSFT) recently posted better-than-expected second quarter earnings, with stable growth rates for its key cloud computing division. Microsoft’s revenues for Azure, its flagship cloud division, rose 31% from last year, topping Street forecasts but slowing from earlier gains in the mid to high 40-percent range. Overall group revenues rose 1.9% to $52.7 billion for the three months ending in December, Microsoft’s fiscal second quarter, coming in just shy of analysts’ estimates of a $52.97 billion tally. Microsoft’s bottom fell 12% to $16.4 billion while adjusted earnings fell 6.5% from last year to $2.32 per share, just ahead of the Street consensus forecast of $2.30 per share.
In response to the earnings report, Microsoft shares were marked 4.5% higher in after-hours trading, indicating a Wednesday opening bell price of $252.36 each. Microsoft also announced plans to cut around 5% of its global workforce, resulting in the loss of around 10,000 jobs and a 12 cent hit to December quarter earnings. This move is part of an effort to ‘align costs’ with customer demand and boost investment in areas such as AI and other advanced technologies.
Microsoft CEO Satya Nadella commented on the earnings report, saying, “The next major wave of computing is being born, as the Microsoft Cloud turns the world’s most advanced AI models into a new computing platform. We are committed to helping our customers use our platforms and tools to do more with less today and innovate for the future in the new era of AI.” Microsoft’s job cuts follow similar moves from Amazon and Meta Platforms late last year.
Microsoft (MSFT) recently posted better-than-expected second quarter earnings, with stable growth rates for its key cloud computing division. Microsoft’s revenues for Azure, its flagship cloud division, rose 31% from last year, topping Street forecasts but slowing from earlier gains in the mid to high 40-percent range. Overall group revenues rose 1.9% to $52.7 billion for the three months ending in December, Microsoft’s fiscal second quarter, coming in just shy of analysts’ estimates of a $52.97 billion tally. Microsoft’s bottom fell 12% to $16.4 billion while adjusted earnings fell 6.5% from last year to $2.32 per share, just ahead of the Street consensus forecast of $2.30 per share.
In response to the earnings report, Microsoft shares were marked 4.5% higher in after-hours trading, indicating a Wednesday opening bell price of $252.36 each. Microsoft also announced plans to cut around 5% of its global workforce, resulting in the loss of around 10,000 jobs and a 12 cent hit to December quarter earnings. This move is part of an effort to ‘align costs’ with customer demand and boost investment in areas such as AI and other advanced technologies.
Microsoft CEO Satya Nadella commented on the earnings report, saying, “The next major wave of computing is being born, as the Microsoft Cloud turns the world’s most advanced AI models into a new computing platform. We are committed to helping our customers use our platforms and tools to do more with less today and innovate for the future in the new era of AI.” Microsoft’s job cuts follow similar moves from Amazon and Meta Platforms late last year.
Microsoft (MSFT) recently posted better-than-expected second quarter earnings, with stable growth rates for its key cloud computing division. Microsoft’s revenues for Azure, its flagship cloud division, rose 31% from last year, topping Street forecasts but slowing from earlier gains in the mid to high 40-percent range. Overall group revenues rose 1.9% to $52.7 billion for the three months ending in December, Microsoft’s fiscal second quarter, coming in just shy of analysts’ estimates of a $52.97 billion tally. Microsoft’s bottom fell 12% to $16.4 billion while adjusted earnings fell 6.5% from last year to $2.32 per share, just ahead of the Street consensus forecast of $2.30 per share.
In response to the earnings report, Microsoft shares were marked 4.5% higher in after-hours trading, indicating a Wednesday opening bell price of $252.36 each. Microsoft also announced plans to cut around 5% of its global workforce, resulting in the loss of around 10,000 jobs and a 12 cent hit to December quarter earnings. This move is part of an effort to ‘align costs’ with customer demand and boost investment in areas such as AI and other advanced technologies. Microsoft CEO Satya Nadella commented on the earnings report, saying, “The next major wave of computing is being born, as the Microsoft Cloud turns the world’s most advanced AI models into a new computing platform. We are committed to helping our customers use our platforms and tools to do more with less today and innovate for the future in the new era of AI.”
Microsoft’s job cuts follow similar moves from Amazon and Meta Platforms late last year. Microsoft’s earnings report and job cuts illustrate the company’s commitment to investing in advanced technologies and AI, while also striving to remain competitive in the market by reducing costs. The earnings report was well-received by investors, with Microsoft’s shares being marked 4.5% higher in after-hours trading.
News Source