This compares to earnings … Hood also said she now thinks that for the full 2020 fiscal year, which ends on June 30, Microsoft will increase its operating margin by 2 percentage points, suggesting about 36%, thanks to the company's results in the first half and the product sales mix in the second half. Microsoft revenue grew 17% on an annualized basis, up from 12% growth in the prior quarter, according to a statement. Follow @CNBCtech on Twitter for the latest tech industry news. Microsoft Corporation (NASDAQ:MSFT) Q2 2021 Earnings Conference Call January 26, 2021 5:30 PM ET. Microsoft (MSFT) delivered earnings and revenue surprises of 23.78% and 7.36%, respectively, for the quarter ended December 2020. Read the full earnings … Your average analyst would have settled for earnings of roughly $1.64 per share on revenue near $40.2 billion. Microsoft reported its FY21 Q2 earnings today, bringing in a massive $43.1 billion up 17 percent year over year from $36.9 billion. Microsoft reported adjusted EPS for Q2 FY 2021 that beat analyst estimates. Revenue also exceeded expectations, rising at a robust pace compared to the same three-month period a year ago. The middle of the range, at $40.8 billion, implies 16.5% growth and is higher than the $38.70 billion consensus among analysts polled by Refinitiv. In the fiscal second quarter, revenue from Microsoft's Intelligent Cloud business segment totaled $14.60 billion. Technology industry research company Gartner estimated that PC shipments, excluding Chromebooks, grew 10.7% in the quarter. Earnings increased by 34% to $2.03 per diluted share. Microsoft's machine continues to execute very well, says Griffin Securities' Vleeschhouwer, released $500 Xbox Series X and $300 Series S consoles. Microsoft (MSFT) reported Q2 2021 earnings on January 26, 2021. Revenue guidance for the company quarter beat expectations. Microsoft shares rise on revenue and earnings beat. Microsoft today announced their FY Q2 2021 results for the quarter ended December 31, 2020, and, as compared to the corresponding period of last fiscal year, the company delivered the following outstanding numbers: © 2021 CNBC LLC. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Contributor. 2020 Proxy Statement. She said her revenue guidance range for the More Personal Computing segment, at $10.75 billion to $11.15 billion, was wider than usual because of "uncertainty related to the public health situation in China.". Excluding the after-hours move, Microsoft shares are up around 5% since the start of 2021, while the S&P 500 index is up about 3%. © 2021 CNBC LLC. Microsoft's (NASDAQ:MSFT) pre-earnings analysis will be started with a chart from April 1 '13 to 12/31/20, showing the total return of the software giant versus the total return of … The Productivity and Business Processes segment, including Office, Dynamics and LinkedIn, produced $13.35 billion in revenue, which was up 13% and more than the $12.89 billion consensus. VIEW BLOG. by Surur . All Rights Reserved. We want to hear from you. VIEW DETAILS. Microsoft beat expectations for earnings and revenue, as well as its revenue forecast for the current quarter. A look back on 2020. Got a confidential news tip? Last year IDC said that businesses were upgrading to Windows 10 before the end of support for Windows 7 this month. January 26, 2021. "Partners commented this quarter that they have seen Azure investments continue to increase significantly, as well an effective enterprise sales force focused on driving Azure adoption and usage.". The segment's operating margin narrowed to 34.6% from 40% following the introduction of two Xbox video-game consoles in November. In the fiscal second quarter, revenue from Microsoft's Intelligent Cloud business segment totaled $14.60 billion. A Division of NBCUniversal. Industry analysis firm IDC said this month that fourth-quarter PC shipments grew 4.8% year over year to 71.8 million, leading to the first full year of growth since 2011. Financial officers attribute the success to the ongoing impact of COVID on business operations along with the release of the Xbox Series X/S. Sales of new Xbox consoles didn't hurt the margin of the Windows business as much as analysts had expected. With respect to guidance, Microsoft sees $40.35 billion to $41.25 billion in fiscal third-quarter revenue. Azure growth for the quarter came in at 62%, decelerating from 76% a year ago but beating an estimate from Goldman Sachs analysts, who predicted growth of 58%, and accelerating from the prior quarter. All Rights Reserved. Microsoft's OEM non-Pro revenue, from Windows licenses for non-commercial PCs, increased 4%, the fastest growth since 2016. Microsoft said Azure revenue grew 50%. Zacks Equity Research Zacks Published. With respect to guidance, Amy Hood, Microsoft's finance chief, told analysts Microsoft expects $34.1 billion to $34.9 billion in fiscal third-quarter revenue. A Division of NBCUniversal. Jan 21, 2021 10:03AM EST. The OEM Pro category, representing revenue from Windows licenses for commercial PCs, grew 26%, up from 19% one quarter earlier and the fastest growth at least since 2014, as companies kept moving to Windows 10. It did not mention JEDI by name in the risk factor, despite that Amazon is currently challenging the contract award in court. The company also said some of its source code had been accessed after the company had detected malicious SolarWinds software in its environment. Jan 26, 2021 at 21:06 GMT 4 days ago. Microsoft released earnings for the second quarter of fiscal year 2021 on Jan. 26, 2021. 2020 Annual Report. The Intelligent Cloud segment, which holds Azure, GitHub, server products like SQL Server and Windows Server and enterprise services, had $11.87 billion in revenue, up about 27% and more than the $11.40 billion consensus. Additionally, rival Salesforce said it would tap Azure to run its Marketing Cloud service. EPS … Microsoft also stopped supporting the Windows Server 2008 operating system in mid-January, six months after it ended support of the SQL Server 2008 database software. Data is a real-time snapshot *Data is delayed at least 15 minutes. Revenue was up 23% year over year and above the $13.77 billion consensus among analysts polled by FactSet. End of support for Windows Server 2008 contributed to the Intelligent Cloud growth, Microsoft said on Wednesday. Another quarter, another booming earnings report from Microsoft.But what’s notable for Q2 2021is that it isn’t just the cloud driving the company forward this time. Ahead of the second-quarter earnings report, analysts called for continuing strength at Azure, which trails Amazon Web Services in cloud infrastructure, even though growth has been slowing. Azure revenue growth came in at 62%, higher than what some analysts had predicted. Azure revenue growth accelerated and came in above analysts' expectations for the quarter. This is the quarter that ended on Dec. 31, 2020. On Tuesday Microsoft stock closed at $232.33 per share, posting a new all-time high for the first time since September. On a year-over-year basis Microsoft's revenue rose 14% in the quarter, which ended on Dec. 31, according to a statement. The pandemic hasn’t slowed Microsoft’s march to profits as it rounded out an arguably disruptive 2020 calendar, on a high note. How customers accelerated industry innovation during a year of disruptive change. The segment includes the Azure public cloud, server products such as Windows Server, GitHub and enterprise services. Amy Hood, Microsoft's finance chief, said during a conference call with analysts that she expects double-digit revenue growth and "healthy operating-margin expansion" for the full fiscal year, which ends on June 30, even after a change in the useful life of servers and savings related to the coronavirus. Microsoft reported another fantastic quarter with 17% revenue growth. Microsoft MSFT reported second-quarter fiscal 2021 non-GAAP earnings of $2.03 per share, which beat the Zacks Consensus Estimate by 23.8%. Microsoft FY21 Q2 Earnings. Microsoft’s commitment to … The Productivity and Business Processes segment, including Office, LinkedIn and Dynamics, put up $11.83 billion in revenue, up 17% and higher than the FactSet analyst consensus of $11.42 billion. On Tuesday, Microsoft revealed its quarterly earnings report for Q2 of its fiscal year 2021 – or Q4 of calendar year 2020. Microsoft reports Q2 FY21 earnings, makes $17.9 billion profits. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. VIEW DETAILS. Other significant developments in the quarter included the unveiling of new Surface devices and the announced acquisition of data migration start-up Mover. Microsoft's biggest segment, More Personal Computing, containing Windows, Surface, Xbox and Bing, contributed $13.21 billion in revenue, up 1.6% year over year and above the $12.85 billion consensus among analysts surveyed by FactSet. Sign up for free newsletters and get more CNBC delivered to your inbox. Microsoft’s Q2 2021 earnings show a strong gaming business and Surface growing to a $2 billion business. Microsoft posted $43.1 billion in revenue for its fiscal second quarter — a 17% increase from the same period in the prior year and well above the $40.2 billion analysts had predicted. Company Participants. Microsoft Corporation's (MSFT) CEO Satya Nadella on Q2 2021 Results - Earnings Call Transcript Tue, Jan. 26 • 4 Comments Microsoft Corporation 2021 Q2 - Results - Earnings Call Presentation Get this delivered to your inbox, and more info about our products and services. @mspoweruser. X The Redmond, Wash.-based company earned $2.03 a share on sales of … Sign up for free newsletters and get more CNBC delivered to your inbox. "We may be subject to government audits and investigations relating to these contracts, we could be suspended or debarred as a governmental contractor, we could incur civil and criminal fines and penalties, and under certain circumstances contracts may be rescinded," the company said. ET. Microsoft stock rose as much as 6% in extended trading on Tuesday after the company reported fiscal second-quarter earnings Azure cloud revenue growth and quarterly revenue guidance that exceeded analysts' expectations. Michael Spencer - General Manager, IR. Microsoft Reports Earnings, Showing Marked Q2 Growth Microsoft released its quarterly earnings report on Tuesday, bringing in over $43.1 billion of revenue, up 17 percent from the previous quarter. In July she had told analysts to expect a "stable" operating margin for the fiscal year ahead. Microsoft doesn't disclose Azure revenue in dollars. Microsoft (MSFT) came out with quarterly earnings of $2.03 per share, beating the Zacks Consensus Estimate of $1.64 per share. We want to hear from you. Azure, Teams & Xbox Adoption to Aid Microsoft (MSFT) Q2 Earnings. Nominations are open for the 2021 CNBC Disruptor 50, a list of private start-ups using breakthrough technology to become the next generation of great public companies. Data is a real-time snapshot *Data is delayed at least 15 minutes. Got a confidential news tip? Analysts polled by FactSet had expected a 26% margin from the segment. VIEW DETAILS. The most high-profile win for Azure in the quarter came from the U.S. Department of Defense, which awarded the controversial Joint Enterprise Defense Infrastructure (JEDI) cloud contract to Microsoft, worth up to $10 billion over a decade. M icrosoft (MSFT) came out with quarterly earnings of $2.03 per share, beating the Zacks Consensus Estimate of $1.64 per share. The company now has 18 million people subscribing to the Xbox Game Pass service for accessing dozens of games, up from 15 million in September. Contents: Prepared Remarks; Questions and Answers; Call Participants; Prepared Remarks: Operator. https://www.cnbc.com/2020/01/29/microsoft-msft-earnings-q2-2020.html Piper Sandler analysts led by Brent Bracelin, who have the equivalent of a buy rating on Microsoft stock, wrote in a note last week that those actions could "turn into potential growth headwinds this year.". The More Personal Computing segment, containing Windows, gaming, devices and search advertising, generated $15.12 billion in revenue, which was up 14% and came in higher than the $13.47 billion FactSet consensus estimate. Revenue from Xbox hardware decreased 43% in the quarter because of lower prices and volumes; the next-generation Xbox Series X will come out this holiday season. Microsoft shares have been on a steady rise, jumping 63% in the past year, propelled by growth in the company's Azure public cloud business and Office 365 productivity suite. Microsoft Shares Gain After Q2 Earnings Beat, Solid Cloud And Gaming Outlook. She said gaming revenue would grow around 40% in the fiscal third quarter, down sequentially from 51%. Microsoft doesn't disclose Azure revenue in dollars. In the quarter Microsoft released $500 Xbox Series X and $300 Series S consoles, along with a small version of its Surface Laptop PC called the Surface Laptop Go. The earnings news pushed Microsoft stock higher in extended trading. Satya Nadella - … The middle of the range, $34.5 billion, implies about 13% annualized growth and exceeds the $34.14 billion consensus among analysts polled by Refinitiv. Microsoft (NASDAQ:MSFT) Q2 2021 Earnings Call Jan 26, 2021, 5:30 p.m. Microsoft will give investors a peek at the impact of selling new video game consoles when it reports third-quarter earnings on Tuesday. Microsoft included a new risk factor about government work in its latest quarterly earnings statement. This compares to earnings of $1.51 per share a year ago. Do the numbers hold clues to … Analysts had expected around 42% growth. Submit by Friday, Feb. 12, at 3 pm EST. "Our partner conversations this quarter continued to emphasize Azure's momentum, which is enabling the company to significantly outpace the overall market's growth," Goldman Sachs analysts led by Heather Bellini wrote in a Monday note. Microsoft stock moved 4% higher in extended trading on Wednesday after the company announced stronger-than-expected fiscal second-quarter results and revenue guidance for the next quarter. 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