Microsoft tweaks fiscal Q3 guidance on virus-related supply problems

Microsoft Corp. shares fell more than 2% late Wednesday after the software giant said it won't meet some of its guidance for the fiscal 2020 third quarter due to COVID-19. Microsoft in late January guided for fiscal third-quarter sales for its More Personal Computing segment between $10.75 billion and $11.15 billion, which "included a wider-than-usual range to reflect uncertainty related to the public health situation in China," the company said in a statement. While there's "strong" demand for Windows in line with the company's expectations, the supply chain "is returning to normal operations at a slower pace than anticipated," Microsoft said. "As a result, for the third quarter of fiscal year 2020, we do not expect to meet our More Personal Computing segment guidance as Windows OEM and Surface are more negatively impacted than previously anticipated." All other components of its Q3 guidance remain unchanged, Microsoft said. Shares of Microsoft ended the regular trading day up 1.3%.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.