Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Satya Nadella, CEO of Microsoft, arrives at the Annual Media and Technology Conference of Allen and Co. Sun Valley at Sun Valley Resort in Sun Valley, Idaho, July 9, 2024.
Brendan McDermid | Reuters
Microsoft The shares fell up to 5% in the trade extended on Wednesday after the software company issued fiscal results of the second quarter that included a lighter growth in the Azure cloud computing services of the expected.
This is how the company did compared to LSE estimates:
- Profit per action: $ 3.23 compared to $ 3.11 expected
- Revenue: $ 69.63 billion compared to $ 68.78 billion expected
Microsoft’s income grew 12% year after year in the quarter, which ended on December 31, according to a statement. That represents the slowest growth since mid -2023. The net income of $ 24.11 billion increased from $ 21.87 billion in the same quarter of the previous year.
The company’s smart cloud segment, which contains the Azure cloud, contributed $ 25.54 billion in income. That rose around 19%, but below the consensus of $ 25.83 billion among analysts surveyed by Streetacount.
Azure income and other cloud services increased by 31%, below 33% in the previous quarter. Microsoft now has an annualized income execution rate of $ 13 billion for artificial intelligence, said CEO Satya Nadella in the statement.
From growth in the second fiscal quarter, 13 percentage points come from artificial intelligence. Microsoft does not reveal Azure’s income in dollars. Analysts surveyed by CNBC and Streetaccount had been looking for a growth of 31.9% and 31.1%, respectively.
The productivity segment and commercial processes of Microsoft that includes office productivity software and LinkedIn subscriptions registered $ 29.44 billion in revenues. That increased 13.9% and more than the consensus of $ 28.89 billion streetacount.
The most personal computer unit that includes Windows, Bing, Surface and Xbox delivered $ 14.65 billion in income. The number was flat year after year and higher than the streetcount consensus of $ 14.29 billion.
Sales of devices and licenses of the Windows operating system of device manufacturers increased 4%. Gartner technology industry researcher My dear that pc shipments increased 1.4% in the quarter.
The company reported $ 15.80 billion in capital expenses of the second fiscal quarter, excluding financial leases. The consensus among the analysts surveyed by Visible Alpha was $ 15.70 billion.
Microsoft had $ 2.29 billion in its line of the “other expense” line. In October, Amy Hood, the company’s finance chief, had projected $ 1.5 billion in “other expenses”, mainly due to the participation of Microsoft in the expected losses in Openai, in which Microsoft has invested almost $ 14 billion to date.
During the second fiscal quarter, Microsoft announced the Windows 365 Cloud link, a PC to which corporate workers can use access your applications and files stored in the cloud. The company’s github unit announced support for anthropic artificial intelligence models and Google for a programming chatbot in addition to the existing support for OpenAI. Microsoft too Invested additional $ 750 million in Operai during the quarter.
Microsoft’s actions fell 2% on Monday when investors considered the implications of the Deepseek’s models, a Chinese laboratory. Deepseek in December introduced an open source model that the laboratory said it trained for $ 5.6 million, excluding the costs of previous data and research. That would make it more efficient than the models of the main US companies. And last week, Depseek said his newest model, R1, surpassed Operai in some tests.
“We should get the developments from China very, very seriously,” Nadella said January 22. Nadella has committed to Spend $ 80 billion in AI infrastructure in the current fiscal year.
Before the launch of the profits, Microsoft’s shares increased 5% so far in 2025, while the S&P 500 index had won about 3% in the same period.
Executives will discuss the quarterly results with analysts and issue guidance on a telephone conference from 5:30 pm et. Analysts can ask management why Microsoft did not participate in a press conference from the White House on January 21 for the Stargate infrastructure project that involves Openai that could attract $ 500 billion In investment.
These are last -minute news. Consult the updates again.
LOOK: Bill Gurley by Benchmark: Microsoft-Openai Deal sounds like one of the most complex of all time
