Microsoft Q2 earnings edge higher on Office and cloud services growth

by admin January 26, 2017 at 9:37 pm

Microsoft reported financials for its fiscal second quarter today, posting earnings of $0.83 per share on $26.1 billion in revenue. While slightly higher than expected, its financials were met with a tempered reaction from investors.

Microsoft’s results compared with Wall Street’s forecast of $0.79 per share on revenue of $25.3 billion for the quarter. They were also slightly higher than the year-ago quarter, when Microsoft reported earnings of $0.78 per share on revenue of $25.7 billion.

In recent quarters Microsoft has been breaking out the impact from different business segments, providing a more granular view of how each is doing. Here are the results from each major unit:

  • Productivity and Business Processes (PBP), which includes Office, consumer Office, Dynamics and now LinkedIn, saw revenue increase 10 percent to $7.4 billion.
  • Intelligent Cloud (IC), which includes service revenue and Enterprise Services, saw revenue increase 8 percent to $6.9 billion.
  • More Personal Computing (MPC), which contains Windows, Devices, Gaming and Search, saw revenue decline 5 percent to $11.8 billion.

Also of note: Microsoft’s $26.2 billion acquisition of LinkedIn closed late in the quarter. For the quarter, Microsoft reported that LinkedIn contributed $228 million in revenue and reduced EPS by $0.01.

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