Microsoft's (MSFT) second quarter results topped Wall Street estimates on both the top and bottom lines. Earnings per share of $2.93 was better than the expected $2.78, while revenue of $62.0 billion beat estimates of $61.14 billion. The results got a boost from both its personal computing and Productivity and Business Processes units. In the release, Chairman and CEO Satya Nadella says "We’ve moved from talking about AI to applying AI at scale."

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Editor's note: This article was written by Stephanie Mikulich.

Video Transcript

- All right. Let's get to breaking earnings news. Now, we've got Microsoft coming out with its numbers in the last few moments here. The company's second quarter revenue coming in at $62 billion that is ahead of the $61.1 billion that analysts had been anticipating here. And looking at earnings per share of $2.93 to 78 is what analysts had been anticipating.

And if you look at the various segments here-- Intelligent cloud revenue ahead of estimates, productivity revenue ahead of estimates, more personal computing revenue ahead of estimates. The company doesn't provide guidance in its statement, we have to wait for the call for that. Interesting to see the shares pulling back a little bit.

Also, what caught my eye here was the commentary from Satya Nadella in this statement. He says, "We have 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." I mean, I can't wait for the AI word count in the conference call when he says it three times in his brief statement in the, in the earnings release, [CHUCKLES] Josh.

- Well, there, I mean, listen, when you look at that stock and the monster run it has had, of course it is so much about the AI story. It is the way that Nadella and CFO Amy Hood, the way they have focused on integrating AI across products and services. And the question investors and financial analysts, financial analysts have been trying to figure out is, OK, how much does that now pad, Julie, the top and bottom line in the quarters and years ahead.

Azure will also be in focus, of course. The question there is, what do you see ahead? What do you, what acceleration do you think you could look for in the quarters ahead. Other points I'm going to listen to, and the conference call is key here, as you know, we don't get guidance until the call. CFO Amy Hood usually around 6:00 PM Eastern that's when she gives the forecast, and obviously that will, that could play a big role in moving the stock.

But what does she have to say also not just about AI and Azure, I'm interested in what she has to say about the PC market, really important. There's a big debate about what that market looks like in 2024. Also, gaming. Smaller part of the business but they acquired Activision. How excited should Microsoft investors be about that.

- Yeah. If you look at the increase that we saw overall in Microsoft Cloud revenue, specifically, that was up 24%. That was really the big growth driver in terms of percentage gains for revenue here. If you look across other types of areas, office commercial products and cloud services revenue up 15%, server products and cloud services revenue up 22%, one of the bigger places.

But again, I'm really curious, where exactly did they see Copilot feed into some of that revenue, and feed some of that demand as well as some of the demand for Azure et cetera. So we have been seeing the shares pull back a little bit in the early going. Obviously we'll wait for the forecast to see if that's validated, and we'll be also getting some analyst reaction to this in just a few moments.