Microsoft Stock Slips More Than 3% in Extended Trading on Disappointing Revenue Guidance

Redmond, Wash. —

Microsoft Corp. shares fell more than 3% in after-hours trading Tuesday after the software giant reported disappointing revenue guidance for the current quarter. The stock closed at $253.12, down 1.1% on the day but fell to $245.25 in extended trading. The company said it expects revenue in the fiscal third quarter to be between $52.4 billion and $53.2 billion, below the consensus estimate of $53.3 billion. Microsoft also said it expects operating expenses to be between $15.2 billion and $15.6 billion, higher than the consensus estimate of $15.1 billion. The news overshadowed strong results for the fiscal second quarter, which ended Dec. 31. Revenue rose 12% to $52.7 billion, beating the consensus estimate of $52.5 billion. Net income rose 19% to $18.8 billion, or $2.48 per share, beating the consensus estimate of $2.32 per share. “Our commercial cloud revenue grew 38% and our Azure revenue grew 31%,” said Satya Nadella, chairman and CEO of Microsoft. “We continue to see strong demand for our cloud services, and we expect this growth to continue.”