Apr 29, 2020 - Technology

Microsoft earnings beat expectations despite coronavirus impact

Ina Fried, author of Login

Photo: Microsoft

Strength in Microsoft's cloud business helped offset the impact of COVID-19 on computer manufacturing, as the company topped earnings and revenue expectations for the quarter that ended March 31. That's despite a February warning from the company that PC sales would not meet prior estimates.

Why it matters: The tech sector has taken on added importance and value as many other areas of the economy have been shut down or severely impacted by the coronavirus pandemic.

By the numbers:

  • Revenue for the quarter was $35 billion, up 15% from a year earlier and ahead of consensus predictions of around $33.6 billion.
  • Net income was $10.8 billion, up 22%.
  • Per-share earnings were $1.40, compared to analysts' consensus expectations of $1.26, per Yahoo Finance.

What they're saying: "We’ve seen two years’ worth of digital transformation in two months," CEO Satya Nadella said in a statement. "From remote teamwork and learning, to sales and customer service, to critical cloud infrastructure and security — we are working alongside customers every day to help them adapt and stay open for business in a world of remote everything."

However, Microsoft cautioned that "the effects of COVID-19 may not be fully reflected in the financial results until future periods."

The company said it would provide more financial guidance on a conference call with analysts that begins at 2:30 p.m. PT.

Go deeper: Microsoft CEO focused on "new demand" caused by coronavirus

Go deeper

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Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 9 p.m. ET: 6,724.516 — Total deaths: 394,018 — Total recoveries — 2,996,832Map.
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  3. Public health: WHCA president says White House violated social-distancing guidelines to make reporters "a prop" — Jailing practices contribute to spread.
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  5. Jobs: Better-than-expected jobs report boosts stock market.
  6. Media: The Athletic lays off 8% of staff, implements company-wide pay cut.

Scoop: German foreign minister to travel to Israel with warning on annexation

Heiko Maas. Photo: Michael Kappeler/picture alliance via Getty Images

German Foreign Minister Heiko Maas is expected to travel to Israel next week to warn that there will be consequences if Israeli leaders move forward with plans to annex parts of the West Bank, Israeli officials and European diplomats tell me.

Why it matters: Israeli and European officials agree that if Israel goes ahead with unilateral annexation, the EU will respond with sanctions.

Minneapolis will ban police chokeholds following George Floyd's death

A memorial for George Floyd at the site of his death in Minneapolis. Photo: Steel Brooks/Anadolu Agency via Getty Images

Minneapolis has agreed to ban the use of police chokeholds and will require nearby officers to act to stop them in the wake of George Floyd's death, AP reports.

Why it matters: The agreement between the city and the Minnesota Department of Human Rights, which has launched an investigation into Floyd's death while in police custody, will be enforceable in court.