Microsoft shares jump on cloud growth

Microsoft reported mixed fiscal second quarter earnings. Yahoo Finance Live anchors Dave Briggs and Seana Smith break down the results.

Video transcript

DAVE BRIGGS: Microsoft just out with their latest earnings report, and you can see shares up more than 4 and 1/2% after hours. Yahoo Finance Tech Editor Dan Howley has the numbers for us. Dan, what stands out to you?

DAN HOWLEY: That's right. Microsoft missed slightly on the top line but beat on earnings per share. Revenue came in at $52.7 billion. Expectations were for $52.9 billion. So you see that little miss there. But adjusted EPS came in at $2.32 a share. That's versus expectations of $2.30 per share.

Let me just run through the businesses that they have. The Productivity and Business Processes came in at $17 billion. That's better than expected of $16.8 billion. Intelligent Cloud, that came in at $21.5 billion. That's versus the $21.4 billion that was expected. So a beat there. And then More Personal Computing, that obviously has taken a beating-- $14.2 billion versus the $14.7 billion that was expected.

CEO Satya Nadella said, "The next major wave of computing is born, as Microsoft Cloud turns the world's most advanced AI models into new computing platforms." That, clearly, a reference to their multiyear, multibillion-dollar investment in OpenAI, which is meant to help them better tackle competitors like Amazon and Google, not to mention enterprise services like Salesforce.