Microsoft (MSFT) earnings Q2 2021


Satya Nadella, chief executive officer of Microsoft Corp., speaks during the Viva Technology conference in Paris, France, on Thursday, May 24, 2018. Viva Tech, a three-year-old event for startups, gathers global technology leaders and entrepreneurs as the French establishment unites behind a push for more tech investment in Paris.

Marlene Awaad | Bloomberg | Getty Images

Microsoft will announce its fiscal second-quarter earnings after market close on Tuesday.

Here’s what analysts are expecting:

  • Earnings: $1.64 per share, adjusted, as expected by analysts, according to Refinitiv.
  • Revenue: $40.18 billion as expected by analysts, according to Refinitiv.

Revenue is expected to be up 9% on an annualized basis, compared with 12% in the prior quarter.

In the quarter Microsoft released $500 Xbox Series X and $300 Series S consoles, along with a small version of its Surface Laptop PC called the Surface Laptop Go. The company also said some of its source code had been accessed after the company had detected malicious SolarWinds software in its environment.

Investors are keen to see the margin impact of Xbox console sales on the business unit containing gaming, along with revenue growth from the Azure cloud. Analysts expect around 42% growth, which would be down from 48% in the prior quarter.

With respect to guidance, analysts expect $38.70 billion in fiscal third-quarter revenue, which would represent 10.5% annualized growth.

Microsoft shares are up around 5% since the start of 2021, while the S&P 500 index is up about 3%.

Executives will discuss the results on a conference call with analysts starting at 5:30 p.m. Eastern time.

This is breaking news. Please check back for updates.

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