Microsoft did not convince investors with the quarterly figures published on Tuesday night. The software giant missed analysts’ expectations in terms of sales and earnings. In a first reaction outside of business hours, Microsoft shares fell about 1 percent.
Microsoft increased its sales in the fiscal fourth quarter (through the end of June) compared to the same quarter last year by 12 percent to $51.9 billion. Net income, on the other hand, increased just 2 percent to $16.7 billion, or $2.23 per share.
Therefore, analysts’ expectations were not met. Experts had expected adjusted earnings per share of $2.23 on sales of $52.3 billion.
A closer look at the development of sales makes it clear that no segment stood out this time and that the bank did not meet expectations:
In the “Intelligent Cloud” growth segment, revenue increased 20 percent to $20.9 billion. The division’s highlight continues to be Azure infrastructure service and related cloud services, which are up 40 percent. Strong unchanged, but analysts expected more for the entire segment at $21.1 billion.
The division around Windows, Surface Books and Xbox dubbed “More Personal Computing” failed to beat expectations of $14.7 billion on sales growth of two percent to $14.4 billion. The “Productivity and Business Processes” segment was also below estimates by $16.7 billion on revenue of $16.6 billion.
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