Microsoft’s Q2 Earnings Rise As Pandemic Boosts Cloud, Surface And Xbox
Microsoft Corp on Tuesday posted the second quarter of its 2021 financial results, reporting revenue of $43.1 billion and a net income of $15.5 billion.
On a conference call with investors, Microsoft executives said they expect a midpoint of $14.83 billion in revenue from the company’s “Intelligent Cloud” segment for the fiscal third quarter, compared with Wall Street expectations of $14.12 billion, according to Refinitiv data.
For the company’s productivity segment and its personal computing segment, sales are expected to have a respective midpoint of $13.48 billion and $12.50 billion, compared with estimates of $12.90 billion and $11.60 billion, according to Refinitiv data.
Microsoft said GamePass, the company’s $10 monthly gaming subscription, has 18 million users, up from 15 million disclosed in September. The Xbox Live online gaming service has more than 100 million monthly active users.
Microsoft said revenue in its “Intelligent Cloud” segment rose 23% to $14.6 billion, with 50% growth in Azure. Analysts had expected a 41.4% growth in Azure, according to consensus data from Visible Alpha. The previous quarter Azure grew 48%.
“This was really driven by continued customer demand, with stronger-than-expected consumption as customers have increased their focus on digital transformation,” Microsoft Chief Financial Officer Amy Hood told Reuters in an interview.
The software giant’s overall revenue rose to $43.08 billion in the second quarter ended Dec. 31, from $36.91 billion a year earlier, beating analysts’ estimates of $40.18 billion, according to IBES data from Refinitiv.
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