The tech giant had announced third quarter revenue estimates of $10.75 billion to $11.15 billion on January 29. Those numbers are no longer accurate because Windows and Surface laptops are “more negatively impacted than previously anticipated,” the company said
“All other components of our Q3 guidance remain unchanged,” the company said. “As the conditions evolve, Microsoft will act to ensure the health and safety of our employees, customers, and partners during this difficult period.”
Microsoft’s announcement comes a week after Apple warned that it no longer expects to meet its previous revenue guidance for the upcoming March quarter, citing “a slower return to normal conditions than we had anticipated.”
“It’s a confession that the coronavirus [is] impacting personal computers,” said Dan Ives, managing director of equity research at Wedbush Securities. “It’s a negative but not a gamechanger for Microsoft. It will have a ripple impact across the supply chain [and] fans the flames on coronavirus worries. Apple and Microsoft have now confirmed the negative impact Wall Street had feared.”
Instead, it provided guidance that does not reflect any impact from the outbreak.