Shares of Microsoft (NASDAQ:MSFT) traded flat in after-hours trading on Tuesday, Jan. 30 after the tech giant released second-quarter earnings. This comes despite strong earnings figures; revenue of $62 billion exceeded Wall Street estimates of $61.1 billion by 1.5%, while earnings per share of $2.93 beat by 5.3%. Earnings figures represented a 26.3% increase from a year earlier.
“We’ve moved from talking about AI to applying AI at scale,” said Satya Nadella, chairman and CEO of Microsoft. “By infusing AI across every layer of our tech stack, we’re winning new customers and helping drive new benefits and productivity gains across every sector.”
Cloud computing and productivity and business processes helped drive the strong results. Microsoft Cloud revenue reached $33.7 billion, growing by 24% year over year.
Nevertheless, Wall Street seemed to want more. Shares of the tech giant remained unchanged despite the news. Concern also remain over Microsoft’s restructuring of its gaming division. On Jan. 25, the firm announced it would lay off 1,900 employees from Xbox and Activision Blizzard divisions, signaling a clear shift of focus toward AI.
The company will release its 2024 outlook in its upcoming earnings conference call later today, and investors can expect Microsoft’s next earnings report in April. Year to date, Microsoft shares have returned 9%, outpacing the S&P 500’s 3.4% return.
On the date of publication, Thomas Yeung did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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