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Microsoft Posts Q2 Earnings Beat, Intelligent Cloud Revenue Up 8%

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Microsoft Corp. (MSFT - Free Report) just released its second quarter fiscal 2017 financial results, posting earnings, before non-recurring items, of 83 cents per share and revenues of $26.1 billion. Currently, MSFT is a #2 (Buy) on the Zacks Rank, and is down a slight 0.08% to $64.27 per share in trading shortly after its earnings report was released.

Beat earnings estimates. The company posted earnings of 83 cents per share, surpassing the Zacks Consensus Estimate of 79 cents per share. This number excludes 17 cents from non-recurring items.

Beat revenue estimate. The company saw non-GAAP revenue figures of $26.1 billion, beating our consensus estimate of $25.207 billion and increasing 9.5% year-over-year.

Microsoft reported revenue in Intelligent Cloud of $6.9 billion, an increase of 8% (up 10% in constant currency). More specifically, server products and cloud services revenue increased 12%, Azure revenue increased 93%, with Azure compute usage more than doubling year-over-year, and Enterprise Services revenue decreased 4%.

Productivity and Business Processes revenue was $7.4 billion, while More Personal Computing revenue was $11.8 billion for the quarter.

“Our customers are seeing greater value and opportunity as we partner with them through their digital transformation,” said Satya Nadella, chief executive officer at Microsoft. “Accelerating advancements in AI across our platforms and services will provide further opportunity to drive growth in the Microsoft Cloud.”

Here’s a graph that looks at Microsoft’s price, consensus, and EPS surprise:

Microsoft Corporation Price, Consensus and EPS Surprise

Microsoft Corporation Price, Consensus and EPS Surprise | Microsoft Corporation Quote

Microsoft is a leading technology company. Their products include operating systems for computing devices, servers, phones, and other intelligent devices; server applications for distributed computing environments; cross-device productivity applications; business solution applications; desktop and server management tools; software development tools; video games; and online advertising. They also design and sell hardware including PCs, tablets, gaming and entertainment consoles, phones, other intelligent devices, and related accessories. They offer cloud-based solutions that provide customers with software, services, platforms, and content. They also provide consulting and product and solution support services, and they train and certify computer system integrators and developers.

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