Microsoft posts revenue, EPS beat

Microsoft reported earnings that topped the Street’s expectations. The tech company posted $43.1B in revenue and $2.03 in adjusted EPS, outperforming consensus estimates of $40.2B in revenue and $1.64 EPS.

Video Transcript

SEANA SMITH: We're going to get to some breaking news. Microsoft is out with its earnings shares popping here after hours. Jared Blikre has the numbers for us. Jared.

JARED BLIKRE: That is right. We got beats on both the top and bottom lines. And we have the stock at a record high right now. Well, we already had a record a few minutes ago before the close. And now, another one. So let's go through the numbers. Second quarter EPS came in at $2.03. Estimate was for quite a bit lower at $1.64. Looking at revenue of $43.1 billion, handily beating estimates of $40.2 billion. Looking at the cloud, now, this was a key metric. Second quarter intelligent cloud revenue came in at $14.6 billion. Estimates were for lower at $13.75 billion.

I'm not sure that's quite enough to get double digits. If it is, that will be 13 quarters in a row. So we'll check that out. And then, in some other segments, second quarter productivity revenue was up $13.35 billion. Estimate was for lower at $12.94 billion. And finally, personal computing revenue really knocking it out of the park here, $15.12 versus estimates of-- excuse me, not $15, $15.12 billion-- when the estimate was for $13.55 billion.

And Satya Nadella, he had some interesting words in the release here. It looks like it's not at my fingertips, but basically outlining the past year and what an incredible journey it's been, especially since he has taken over this country and really launched it to new heights, considering that they have three divisions, three operating units that are pulling in regularly more than $10 billion in revenue on a consistent basis. It is quite the story. But nevertheless, we're looking at the stock here, up about 4% in after hours, trading at a record high after quite a beat here on both the top and bottom lines and other key metrics. Guys.

ADAM SHAPIRO: Jared, I realize the report just crossed, and it might be-- you know, got a deep dive. But Azure sales, the cloud sales increased 48% in the September quarter, up from the previous quarter 47%. Do we see the pace of growth in Azure continuing at that kind of strength?

JARED BLIKRE: Yes, so two big pillars of strength there. And the cloud is definitely one of them, especially as it's become central to our daily lives. We had a fiber outage here in New York, and just about every service went down earlier in the day. So we know what that's like. But yeah, Microsoft really starting to increase its competition with Amazon. And you got to think, some of the other entrants in the field like IBM, they got a huge, huge game of catch-up, even Alphabet trailing here.