Microsoft earnings are out – here are the numbers

Microsoft shares were down 1% in extended trading on Tuesday after the software maker issued fiscal second-quarter results that outdid analysts’ estimates.

Here’s how the company performed, compared with consensus among analysts polled by LSEG, formerly known as Refinitiv:

• Earnings: $2.93 per share, vs. $2.78 per share expected
• Revenue: $62.02 billion, vs. $61.12 billion expected

Microsoft’s revenue increased 17.6% year over year in the year, which ended on Dec. 31, according to a statement. Net income, at $21.87 billion, or $2.93 per share, increased from $16.43 billion, or $2.20 per share.

The company’s Intelligent Cloud segment produced $25.88 billion in revenue, up 20% and above the $25.29 billion consensus among analysts surveyed by Refinitiv. The grouping contains Azure cloud infrastructure, SQL Server, Windows Server, Nuance, GitHub and enterprise services.

Within that segment, revenue from Azure and other cloud services grew 30%. Analysts polled by CNBC had expected 27.7% growth, and the StreetAccount consensus was 27.5%. The metric for the previous quarter was 29%.

During the fiscal second quarter, Microsoft closed its acquisition of video game publisher Activision Blizzard, its largest deal ever. The company also announced custom cloud chips and started selling a $30 monthly Copilot artificial intelligence add-on to Microsoft 365 productivity software bundles.

But layoffs continued. Microsoft’s LinkedIn subsidiary cut around 700 jobs in October on top of the 10,000 announced earlier in the year. Last week, Microsoft said it’s eliminating around 1,900 employees in its gaming unit, or about 9% of headcount, following the Activision deal.

Microsoft shares have risen about 9% so far in 2024, while the S&P 500 index has gained 3% over that stretch.

Executives will issue guidance and discuss the results with analysts on a conference call starting at 5:30 p.m. ET.

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