What's Going On With Microsoft Stock Today?

Microsoft Corp MSFT shares are in the spotlight Wednesday after the company reported fiscal second-quarter financial results. Several analysts also weighed in following the print.

• Q2 Revenue: $62 billion beat estimates of $61.12 billion

• Q2 EPS: $2.93 beat estimates of $2.76

Total revenues were up 18% on a year-over-year basis. Productivity and Business Processes revenue was up 13%, Intelligent Cloud revenue was up 20%, More Personal Computing revenue was up 19%, Office Commercial revenue increased 15% and Xbox Content and Services was up 61% due to the company’s Activision takeover.

“We've moved from talking about AI to applying AI at scale. 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,” said Satya Nadella, chairman and CEO of Microsoft.

On the conference call, Microsoft guided for a roughly 1 point decrease in Microsoft Cloud gross margin percentage and for capital expenditures to increase materially on a sequential basis.

Microsoft sees Productivity and Business Processes revenue growth of 10% to 12%, Office 365 revenue growth of approximately 15%, Office Consumer and LinkedIn revenue growth in the mid-to-high single-digits, Intelligent Cloud revenue growth between 18% and 19% and stable revenue growth in Azure.

Analyst Changes: Following the print, several analysts adjusted price targets on the stock.

• Barclays maintained Microsoft with an Overweight and raised the price target from $421 to $475.

• Macquarie maintained Microsoft with an Outperform and raised the price target from $430 to $450.

• Raymond James maintained Microsoft with an Outperform and raised the price target from $400 to $450.

• Wells Fargo maintained Microsoft with an Overweight and raised the price target from $435 to $460.

See Also: Wedbush’s Dan Ives Lauds Microsoft’s ‘Masterpiece Quarter,’ Says CEO Nadella’s Guidance ‘Should Be Hung In The Louvre’

MSFT Price Action: Microsoft shares fell below the $400 level shortly after reporting on Tuesday, but the stock has recovered some of its losses in early trading Wednesday. Microsoft shares were down 0.29% at $407.40 at the time of publication, according to Benzinga Pro.

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