Microsoft Says Coronavirus Has Impacted its Guidance

Windows creator Microsoft announced this week that it doesn’t expect to meet the quarterly revenue guidance it previously provided for the segment that includes Windows due to the coronavirus outbreak.

Shares were down 2% in after-hours trading on Wednesday on the announcement. The company said its revenue guidance for the More Personal Computing unit had already been wider than usual to account for impact from the health situation in China, where the coronavirus had first been identified.

“Although we see strong Windows demand in line with our expectations, the supply chain is returning to normal operations at a slower pace than anticipated at the time of our Q2 earnings call,” Microsoft said in a statement.

It added, “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.”

The company’s More Personal Computing Segment accounted for about 36% of total revenue and about 30% of operating income in the fiscal second quarter.

The company did not issue updated guidance. It said the other guidance it had provided for the fiscal third quarter, which ends on March 31, still stands.

Disclaimer: We have no position in Microsoft Corporation (NASDAQ: MSFT) and have not been compensated for this article.