- Microsoft (NASDAQ:MSFT) shares are down 1.3% aftermarket following a Q2 report that beat on EPS and revenue.
- Productivity and Business Processes revenue was $9B (+24% Y/Y in constant currency). Office 365 commercial revenue was up 41%. LinkedIn (NYSE:LNKD) contributed $1.3B.
- Intelligent Cloud had revenue of $7.8B (+15%). Server products and cloud services revenue increased 18% driven by a 98% growth in Azure revenue. This was the 10th consecutive quarter of 90%+ revenue growth for Azure.
- More Personal Computing totaled $12.2B in sales (+2%). Windows commercial products and services decreased 5% due to a large deal in the prior year. Gaming revenue grew 8% in the holiday quarter driven by the Xbox One X launch. Search ad revenue excluding TAC increased 15% due to higher revenue per search and search volume. Surface revenue was flat in constant currency.
- Tax reform impact: Microsoft recorded a net charge of $13.8B related to the tax reform.
- Earnings call is scheduled for 5:30 PM Eastern Time with a webcast available here.
- Press release
- Previously: Microsoft beats by $0.09, beats on revenue (Jan. 31)
- Now read: Tax Bill Musings And Curious Consequences
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