Cloud compute firm VMWare (NYSE:VMW) failed to excite with its second-quarter earnings, despite beating market forecasts.
The stock nudged 1.4% lower, to $166.35, after it reported adjusted earnings of $1.83 per share on revenue of $3.41 billion, versus consensus forecasts of $1.71 and $3.46 billion respectively.
It also flagged a 34% jump in subscription and software-as-a-service revenue, up to $1.26 billion, but still did not wow investors during late or early trading.
“We delivered solid Q2 results. Our customers continue to invest in our Multi-Cloud offerings as they modernize their infrastructure to run enterprise, cloud-native, and new AI workloads,” CEO Raghu Raghuram said in a statement.
Raghuram also talked up the company’s work in artificial intelligence (AI).
“At the recent VMware Explore Las Vegas, we unveiled new offerings including the next evolution of VMware Cloud, NSX+, vSAN Max, and an enhanced Tanzu Application Platform, all designed to help customers innovate faster and reduce total cost of ownership. We also introduced VMware Private AI Foundation with NVIDIA to accelerate AI-enabled applications in the enterprise.”