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Microsoft reports $23.5 billion in revenue but misses Wall Street expectations
Sales of Surface tablets and laptops were off 26 percent.
Microsoft announced quarterly earnings Thursday afternoon, with earnings that beat expectations, while revenues just missed Wall Street consensus estimates.
The company reported $23.5 billion in revenue and earnings of $0.73 per share. Financial analysts had expected $23.6 billion in revenue and earnings of $0.70. Shares were down roughly 1.5 percent in after-hours trading.
Here are the company’s three business segments and their respective revenues:
- Productivity & Business Processes — $7.96 billion (up, driven by LinkedIn and Office 365)
- Intelligent Cloud — $6.76 billion (up)
- More Personal Computing — $8.84 billion (down)
LinkedIn contributed $975 million in revenue to Productivity & Business Processes.
More Personal Computing was the source of the revenues miss and was down 7 percent overall. In particular, Surface revenue was off a surprising 26 percent. However, Windows OEM revenue grew 5 percent. Search ad revenue was up 8 percent.
More detail, including the earnings slides, available here.