Keith Weiss, Morgan Stanley analyst, joins 'Squawk on the Street' to discuss Microsoft's earnings results where the company delivered a beat on expectations. For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://cnb.cx/2NGeIvi  Microsoft reported better-than-expected earnings and revenue for the fiscal second quarter. The stock initially dropped in extended trading but turned positive after the company issued a sales forecast that also exceeded estimates. Here’s how the company did: Earnings: $2.48 per share, adjusted, vs. $2.31 per share as expected by analysts, according to Refinitiv. Revenue: $51.73 billion, vs. $50.88 billion as expected by analysts, according to Refinitiv. Revenue increased by 20% from a year earlier, according to a statement, compared with almost 22% growth in the previous quarter. Microsoft’s net income swelled by 21% to $18.77 billion. The company had $36.77 billion in unearned revenue at the end of the year, below the StreetAccount consensus of $36.90 billion. Microsoft said it expects to recognize 45% of its $152 billion in remaining performance obligations over the next year, the first time that percentage has slipped below 50% since at least 2017. Microsoft reported better-than-expected earnings and revenue for the fiscal second quarter. The stock initially dropped in extended trading but turned positive after the company issued a sales forecast that also exceeded estimates. Here’s how the company did: Earnings: $2.48 per share, adjusted, vs. $2.31 per share as expected by analysts, according to Refinitiv. Revenue: $51.73 billion, vs. $50.88 billion as expected by analysts, according to Refinitiv. Revenue increased by 20% from a year earlier, according to a statement, compared with almost 22% growth in the previous quarter. Microsoft’s net income swelled by 21% to $18.77 billion. The company had $36.77 billion in unearned revenue at the end of the year, below the StreetAccount consensus of $36.90 billion. Microsoft said it expects to recognize 45% of its $152 billion in remaining performance obligations over the next year, the first time that percentage has slipped below 50% since at least 2017. Microsoft’s Intelligent Cloud segment, which contains the Azure public cloud, GitHub and server products such as Windows Server, generated $18.33 billion in revenue. That equals 25.5% growth, and is a bit higher than the $18.3 billion consensus among analysts surveyed by StreetAccount. Revenue from Azure and other cloud services grew 46%, ending a streak of four quarters at or above the 50% mark. The expectation was 46%, according to a CNBC survey of 15 analysts, while analysts polled by StreetAccount had been looking for 45.3% Azure growth. Microsoft doesn’t disclose Azure revenue in dollars. Hood said there will be a sequential growth acceleration in constant currency in the current quarter for Azure. Revenue from the More Personal Computing segment, which includes Windows, advertising, devices and gaming, totaled $17.47 billion. That’s up 15.5% and above the StreetAccount consensus of $16.56 billion. Microsoft said sales of Windows licenses increased by 25% in the fourth quarter of 2021. Technology industry research firm Gartner estimated that PC shipments had fallen 5%. Xbox hardware revenue rose 4% with the passing of the one-year anniversary of Microsoft’s launch of the Xbox Series X and Series S consoles. In the previous quarter, Xbox hardware revenue surged166%. The gaming component of Microsoft, which now represents almost 11% of total revenue, became more relevant to investors this month, when the company announced plans to acquire Activision Blizzard, the publisher of Call of Duty, for $68.7 billion, the largest deal in Microsoft’s 46-year history. » Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision » Subscribe to CNBC: https://cnb.cx/SubscribeCNBC Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide. The News with Shepard Smith is CNBC’s daily news podcast providing deep, non-partisan coverage and perspective on the day’s most important stories. Available to listen by 8:30pm ET / 5:30pm PT daily beginning September 30: https://www.cnbc.com/2020/09/29/the-news-with-shepard-smith-podcast.html?__source=youtube%7Cshepsmith%7Cpodcast    Connect with CNBC News Online Get the latest news: http://www.cnbc.com/ Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC https://www.cnbc.com/select/best-credit-cards/  #CNBC #CNBCTV