Microsoft CEO Satya Nadella, left, departs from federal court in Washington, D.C., on Oct. 2, 2023.
Nathan Howard | Bloomberg | Getty Images
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:
- Earnings: $2.93 per share. That may not compare with the $2.78 per share expected by LSEG.
- Revenue: $62.02 billion. That may not compare with the $61.12 billion expected by LSEG.
Microsoft’s revenue increased 17% 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.
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.
WATCH: Microsoft briefly surpasses $3 trillion in market cap
Credit: Source link
