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Microsoft (NASDAQ:MSFT) drops 2.5% despite fiscal Q4 beats driven by the pandemic's remote work and learning trends.
Revenue breakdown: Productivity and Business Processes $11.75B (consensus: $11.90B);Intelligent Cloud, $13.37B (consensus: $13.11B); More Personal Computing, $12.91B (consensus: $11.47B).
Work and learn from home trends helped the Productivity and Business and Intelligent Cloud segments, though traditional licensing slowed and LinkedIn (+11% Y/Y in constant currency) was negatively impacted.
In More Personal Computing, Windows OEM (+7%), Surface (+30%), and Xbox (+68%) benefited from the remote trends while Search ex-TAC (-17% Y/Y) was hit by the ad spend cuts.
Azure revenue was up 50% Y/Y in the quarter compared to the 61% growth last quarter.
Operating expenses were up 13% Y/Y including the $450M charge for closing the physical stores.
Microsoft returned $8.9B to shareholders in the quarter, up 16% Y/Y.