Microsoft released second-quarter earnings on Wednesday, reporting $81 billion in revenue. CFO Amy Hood sent an internal memo about the results, viewed by Business Insider.
The company said on Wednesday that revenue in the most recent quarter was $81.3 billion, but its share price dropped more than 5 percent in after-hours trading.
Microsoft Corp (NASDAQ:MSFT) shares plummeted as much as 7% afterhours as heightened cloud expectations overshadowed better-than-expected revenue and profit for the fiscal second quarter. Revenue for the quarter ended December 31 grew 17% year-over-year to $81.27 billion, above Wall Street estimates of $80.27 billion.
The company reported strong growth in Azure cloud-computing segment and an earnings-per-share boost from OpenAI deal
Microsoft topped quarterly revenue expectations for its crucial cloud-computing business on Wednesday, signaling that its hefty spending on artificial intelligence was paying off, easing worries about intensifying competition.
AI spending and advancements have accelerated over the last few years, subsequently giving rise to the “Magnificent Seven," or Nvidia (NVDA), Microsoft (MSFT), Apple (AAPL), Alphabet (GOOGL), Amazon.com (AMZN), Meta Platforms (META), and Tesla (TSLA).
Microsoft is scheduled to report its latest quarterly results after the market closes on Wednesday, with traders anticipating a big move in the tech giant's stock following the results.
AI spending and advancements have accelerated over the last few years, subsequently giving rise to the “Magnificent Seven," or Nvidia (NVDA), Microsoft (MSFT), Apple (AAPL), Alphabet (GOOGL), Amazon.com (AMZN), Meta Platforms (META), and Tesla (TSLA).
Microsoft NASDAQ: MSFT officially launched its custom Maia 200 AI accelerator in the last week of January, marking a milestone in the company's infrastructure strategy. The announcement comes at a critical moment for the tech sector giant, landing just 48 hours before the company is scheduled to release its fiscal second-quarter earnings report.
The US earnings season heats up this week, with investors turning their attention to the first reports from the so-called “Magnificent 7” tech giants, care of Meta Platforms Inc (NASDAQ:META, XETRA:FB2A, SIX:FB), Microsoft Corp (NASDAQ:MSFT), Tesla Inc (NASDAQ:TSLA), and Apple Inc (NASDAQ:AAPL, XETRA:APC). After the S&P 500 posted its first two-week losing streak since June, all eyes are on these mega-cap companies, whose results could determine the trajectory of the broader market.
Driven by the artificial intelligence frenzy, Microsoft is internally projecting that water use at its data centers will more than double by 2030 from 2020, including in places that face shortages.
MSFT heads into Q2 earnings with Azure projecting 37% cc growth as AI partnerships, Ignite launches and new infrastructure fuel cloud momentum in Intelligent Cloud.