Microsoft (MSFT) shares fell 5% in extended trading on Wednesday after the tech giant reported fiscal second-quarter results that topped estimates.
For the period ending Dec. 31, the Satya Nadella-led firm said it earned an adjusted $4.14 per share as revenue rose 17% year-over-year to $81.27B, or 15% in constant currency. Included in that was $32.91B from its Intelligent Cloud division, which consists of its Azure cloud unit. Microsoft said Azure revenue grew 39% year-over-year and 38% in constant currency.
Total cloud-related revenue was $51.5B for the period, while Productivity and Business Processes revenue came in at $34.12B, above the $33.45B estimate. Included in that was a 17% year-over-year rise in Microsoft 365 Commercial cloud revenue (14% in constant currency); a 29% rise in Microsoft 365 Consumer cloud revenue (27% in constant currency); an 11% increase in LinkedIn revenue (up 10% in constant currency); and a 19% increase in Dynamics 365 revenue, up 17% in constant currency.
Revenue from More Personal Computing, which includes Xbox, Activision, Windows, and Microsoft Surface, for the period was $14.25B, slightly below the $14.33B estimate.
Analysts had expected the company to earn $3.91 per share on $80.31B in revenue.
“We are only at the beginning phases of AI diffusion and already Microsoft has built an AI business that is larger than some of our biggest franchises,” said Satya Nadella, chairman and chief executive officer of Microsoft, in a statement. “We are pushing the frontier across our entire AI stack to drive new value for our customers and partners.”
The company is set to host a conference call at 5:30 p.m. EST to discuss the results. In addition, Microsoft generally provides guidance for the upcoming quarter on the call.