ETFs in Focus on Microsoft Q2 Earnings Beat & Weak Cloud

The world's largest software maker Microsoft MSFT reported strong second-quarter fiscal 2022 results, beating earnings estimates. However, it missed revenue estimates and forecast weak cloud revenues (see: all the Technology ETFs here).

Shares of MSFT initially climbed 4% in after-market hours on an elevated volume and then erased all gains to close down 1% on a weak cloud forecast. Investors could keep a close eye on this software leader through ETFs having double-digit exposure to Microsoft. These are Select Sector SPDR Technology ETF XLK, iShares Dow Jones US Technology ETF IYW, Vanguard Information Technology ETF VGT, MSCI Information Technology Index ETF FTEC and iShares Global Tech ETF IXN.

Earnings in Focus

Earnings per share came in at $2.32, outpacing the Zacks Consensus Estimate of $2.27 but deteriorating 6% from the year-ago quarter. Revenues grew 1.9% year over year to $52.7 billion, falling short of the consensus estimate of $52.93 billion. Revenue growth was dampened by macroeconomic headwinds, which are hurting the cloud business in addition to the PC unit.