Microsoft Corporation second quarter earnings report as windows business declines.

Microsoft Corporation (NASDAQ:MSFT) share prices go down by 4 percent. The company posted its second quarter earnings report as the U.S financial market closes on Monday. The company performed better in the previous quarter. It managed to surpass both, as revenue and net income estimation were up by 70 percent in the last two years. The company generated $26.5 billion of revenues or 71 cents per share. As per the estimation of analysts, company will report income of $5.91 billion, earning per share of $0.71, on revenue of $26.33 billion compared to company’s previous year earnings of 78 cents per share on $24.52 billion of revenue.

The demand of the products of the company is declining day by day however its Cloud business continued to surge at a speedy rate. Microsoft’s commercial cloud revenue, which consist of Office 365(with 9.2 milli0n t0tal users), Dynamics CRM, and Wind0ws Azure went up to 114 percent on yearly basis and has annual rate of $5.5 billion.

These quarterly results appear to support the argument; the organization's future was attached to the cloud business than to its conventional business, as company’s growth rate has declined.
Microsoft, in its second quarter, sold 10.5 million smartphones by adding $2.3 billion in revenue. However this amount could not surpass as the company posted a decline of 11 percent. The gaming hardware of the company also faced a decline by 10 percent when compared to the previous year. The hot selling item in last quarter was newly launched video game console Xbox One because of lower prices which resulted in increased sales during h0liday seas0n. Altogether Microsoft’s surface-related revenue went up by 24 percent on a yearly basis as the hardware demand was moderate.
Satya Nadella, Microsoft CEO said that with continuous increase in cloud related services, plans are to reorganize the company for a “m0bile first, cl0ud first w0rld’’.
Microsoft is putting efforts to bring evolution to its business m0del. The process will affect revenues in the future but Microsoft has always been a blue chip investment therefore Microsoft Corporation (NASDAQ:MSFT) stock holder should be ready for some more volatility in upcoming quarters.