ETFs to Tap on Microsoft Solid Fiscal Q2 Earnings

The world's largest software maker — $Microsoft(MSFT.US)$ — delighted investors with better-than-expected second-quarter fiscal 2022 results. It continued a long track of beating earnings estimates and topped the revenue estimate.

Earnings per share came in at $2.48, outpacing the Zacks Consensus Estimate of $2.29 and improving 22% from the year-ago quarter. Investors should note that Microsoft has not missed on quarterly earnings since the third quarter of fiscal 2016. Revenues grew 20% year over year to $51.7 billion, topping the consensus estimate of $50.1 billion.

Growing demand for cloud computing services and software tools that support at-home workers led to the robust performance. $Microsoft(MSFT.US)$ Cloud generated $22.1 billion in revenues in the quarter, up 32% year over year. Growth of the flagship Azure computing platform rose 46% in the fiscal second quarter, just shy of 50% growth in the fiscal first quarter. Sales of Office 365 Commercial and Dynamic 365 climbed 19% and 45%, respectively.

$Microsoft(MSFT.US)$ expects revenues of $48.50-$49.30 billion in the fiscal third quarter, topping the Zacks Consensus Estimate of $47.77 billion.