Microsoft earnings beat Wall Street expectations as pandemic fuels sales

200715113552 satya nadella 0807 file super tease

200715113552 satya nadella 0807 file hp video

The results signal that the pandemic is continuing to buoy the tech giant’s business — from computers and gaming systems to the cloud computing systems helping companies navigate continued remote working.
Microsoft (MSFT) posted $43.1 billion in revenue for its fiscal second quarter — a 17% increase from the same period in the prior year and well above the $40.2 billion analysts had predicted. Income hit $15.5 billion, or $2.03 per share, compared with the $1.64 earnings per share Wall Street predicted.

The company’s stock shot up more than 6% in after-hours trading Tuesday.

“What we have witnessed over the past year is the dawn of a second wave of digital transformation sweeping every company and every industry,” Microsoft CEO Satya Nadella said in a statement. “Microsoft is powering this shift with the world’s largest and most comprehensive cloud platform.”

During the quarter, Microsoft had major success with its new Xbox Series X and Series S consoles — so much so that retailers had a hard time keeping them stocked and Microsoft asked chipmaker AMD (AMD) for help in making more available.

Revenue from Microsoft’s “more personal computing” segment, which includes Xbox, increased 14% year-over-year to $15.1 billion. That number includes 40% growth in Xbox content and services revenue — a major turnaround compared to the same period a year earlier, during which Xbox content and services revenue had decreased 11%.

This is a developing story.

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