Microsoft Tops Forecasts with Weak Guidance
October 28, 2020
Microsoft reported results for the quarter ended September 30, 2020. The firm had earnings of $1.82 per share, adjusted with $1.54 per share expected. On the top line, revenue was clocked at $37.15 billion which was more than the $35.72 billion which was expected.
Revenue was $37.2 billion and increased 12%
Operating income was $15.9 billion and increased 25%
Net income was $13.9 billion and increased 30%
Diluted earnings per share was $1.82 and increased 32%
“The next decade of economic
performance for every business will be defined by the speed of their
digital transformation,” said Satya Nadella, chief executive officer of
Microsoft. “We are innovating across our full modern tech stack to help
our customers in every industry improve time to value, increase agility,
and reduce costs.”
Microsoft is looking for $39.5 billion to $40.4 billion in fiscal second-quarter revenue. The firm's middle range of $39.95 billion was less than the consensus estimate of $40.43 billion.
Revenue in Productivity and Business Processes was $12.3 billion and increased 11%, with the following business highlights:
Revenue in Intelligent Cloud was $13.0 billion and increased 20% (up 19% in constant currency), with the following business highlights:
Microsoft returned $9.5 billion to shareholders in the form of share repurchases and dividends in the first quarter of fiscal year 2021, an increase of 21% compared to the first quarter of fiscal year 2020.