Microsoft shares fell 7% in extended trading on Tuesday after the software company reported disappointing cloud revenue, overshadowing stronger earnings and revenue than analysts had predicted.
Here’s how the company did, compared with the LSEG consensus:
Earnings per share: $2.95 vs. $2.93 expected
Revenue: $64.73 billion vs. $64.39 billion expected
Microsoft’s revenue increased 15% year over year in the fiscal fourth quarter, which ended on June 30, according to a statement. Net income, at $22.04 billion, was up from $20.08 billion, or $2.69 per share, in the year-ago quarter.
Revenue from Azure and other cloud services grew 29% during the quarter. Analysts polled by CNBC and StreetAccount had expected 31% growth. Microsoft doesn’t disclose revenue from the category in dollars. Last week Google parent Alphabet said revenue from its cloud business, encompassing Workspace productivity software and Google Cloud Platform infrastructure, went up by about 29%.
During the fiscal fourth quarter, Microsoft started selling Surface PCs with AI features that can run certain models locally without the need for an internet connection. Dell, HP and other device makers also touted their own so-called Copilot+ PCs. CEO Satya Nadella said at a press briefing in May that “we’re bringing real joy and a sense of wonder back to creation on the PC.”
Source: https://www.cnbc.com/2024/07/30/microsoft-msft-q4-earnings-report-2024.html
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