Shares of Microsoft (MSFT) – Get Report rose after hours Tuesday after the company reported first-quarter results that topped estimates.
The company reported first quarter revenue of $37.2 billion with earnings of $1.82 per share. Analysts were expecting revenue of $35.76 billion with earnings of $1.55 per share.
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Microsoft’s Intelligent Cloud business saw revenue rise 20% to $12.99 billion, topping expectations of $12.78 billion. The company’s legacy personal computing business reported revenue of $11.85 billion, also topping estimates of $11.27 billion.
“Demand for our cloud offerings drove a strong start to the fiscal year with our commercial cloud revenue generating $15.2 billion, up 31% year over year,” said Amy Hood, Microsoft CFO. “We continue to invest against the significant opportunity ahead of us to drive long-term growth.”
Microsoft announced the $7.5 billion acquisition of video game studio Zenimax Media in the quarter and the company said that it will provide forward looking guidance on its conference call with analysts today.
“The next decade of economic performance for every business will be defined by the speed of their digital transformation,” said CEO Satya Nadella. “We are innovating across our full modern tech stack to help our customers in every industry improve time to value, increase agility, and reduce costs.”
Microsoft shares rose 0.5% after hours after closing Tuesday’s session up 1.5% to $213.25.
In the broader markets, tech shares gained Tuesday after Advanced Micro Devices, Inc. (AMD) – Get Report announced plans to purchase Xilinx (XLNX) – Get Report for $35 billion. The Nasdaq composite index ended the day up 72 points, or 0.6%, at 11,431.