Shares of Microsoft Corporation edged higher after the bell Tuesday as it adjusted its fiscal third-quarter forecast above Wall Street targets.
The American technology giant added 1.22% or 3.51 points to $292.00 per share. After dropping 2.66% or 7.88 points to $288.49 per share in the regular trading session, it gained pace.
Accordingly, the upbeat outlook soothed concerns about growth. Microsoft reassured investors that the enterprise cloud business still thrives.
Correspondingly, the firm expected its Intelligent Cloud revenue to post between $18.75 billion to $19.00 billion for its current quarter.
The figure significantly came in higher than the analysts’ consensus of $18.15 billion, driven by the solid growth in its Azure platform.
At the same time, it anticipated its Computing unit to reach a revenue between $14.15 billion to $14.45 billion. The outlook is ahead of the average market target of $13.88 billion.
Similarly, it projected its Productivity and Business Processes to obtain between $15.60 billion to $15.85 billion. The estimate is higher than the expected $15.72 billion.
Microsoft is one of the most valuable companies globally as it currently stands with a market capitalization of $2.17 trillion.
However, its stock price has traded 13.82% or 46.26 points lower since the start of the year.
Microsoft Delivers Upbeat Q2 Results
Moreover, Microsoft reported stronger-than-expected earnings and revenue for the fiscal second quarter.
Its revenue edged up 20.00% from a year earlier to $51.70 billion, outpacing the estimated $50.88 billion.
Subsequently, revenue in Intelligent Cloud, Microsoft’s biggest segment offering cloud services, climbed 26.00%.
Likewise, Productivity and Business Processes, which houses its Office 365 services, strengthened 19.00% to $15.90 billion.
Consequently, its diluted earnings increased by 22.00% year-over-year to $2.48 per share, higher than the expected $2.31.
At the same time, Microsoft’s net income elevated by 21.00% to $18.77 billion.
Eventually, the business had $36.77 billion in unearned revenue at the end of the year. The number came in below the consensus of $36.90 billion.
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