Microsoft (NASDAQ:MSFT) reported better-than-expected earnings for its fiscal second quarter and issued strong forward guidance that also exceeded Wall Street estimates.
The Seattle-based company’s earnings per share (EPS) came in at $2.48 U.S. versus $2.31 U.S. per share that was expected by analysts, according to Refinitiv data.
Revenue amounted to $51.73 billion U.S. compared to $50.88 billion U.S. that was expected, a 20% increase from a year earlier. Microsoft’s net income grew by 21% to $18.77 billion U.S. in the quarter.
Microsoft said it expects to recognize 45% of its $152 billion U.S. in remaining performance obligations over the next year, the first time that percentage has slipped below 50% since 2017.
The company also said it expects revenue of $48.5 billion U.S. to $49.3 billion U.S. in the fiscal third quarter, topping the $48.23 billion U.S. Refinitiv consensus.
As of the close of markets yesterday (January 25), Microsoft’s stock is down 14% since the start of 2022, and is on pace for its worst month since 2010. The slump has come alongside a broad selloff in technology stocks as investors brace for higher interest rates.
