Microsoft issues earnings warning and businesses such as Windows won’t meet revenue guidance

Microsoft issued a earnings warning after Wednesday’s session, saying the outbreak would prevent businesses such as Windows from meeting previous revenue guidance. Apple announced a week ago that it was not expected to meet its previous quarterly revenue forecast because of the outbreak. Earlier this week, HP said the company’s update to Windows 10 could be delayed until next quarters. HP is one of the largest sellers of Windows PCs.

Microsoft issues earnings warning and businesses such as Windows won't meet revenue guidance

“While we see strong Windows demand in line with expectations, the supply chain is returning to normal operations at a slower pace than expected at the second quarter earnings call,” Microsoft said in a statement. As Windows OEMs and Surfaces have been less negatively impacted than previously expected, we do not expect the More Personal Computing division to meet its previous guidance in the third quarter of fiscal 2020. All other parts of the third-quarter guidance remain unchanged. “

Microsoft’s third-quarter revenue guidance for the division was between $10.75 billion and $11.15 billion, broader than in previous years. The company said other guidance for the third quarter remained in effect.

In the second quarter, MorePersonal’s computing division accounted for about 36 percent of Microsoft’s total revenue and 30 percent of its revenue. In addition to Windows, the department includes Surface, PC accessories, games, search and MSN ads.

Microsoft’s shares fell 2 percent after the announcement. Intel fell 1 percent after the company’s chips were installed in Windows PCs. Dell fell 1 percent.