Microsoft Slides After Cutting Personal Computing Guidance Due To Coronavirus; Intel Dragged Lower

After trying hard to ignore the deadliest global pandemic in decades, and pretending it would have no impact on future sales or demand, US corporations are starting to fall like viral dominoes, with one after another slashing guidance.

The latest to join Apple, MasterCard, United Airlines, Burberry and dozens more in slashing or pulling their forecast altogether, was Microsoft, which shortly after the close said that for the fiscal third quarter, it doesn’t expect to meet its More Personal Computing segment guidance as Windows OEM and Surface are more negatively impacted than previously anticipated by the coronavirus.

Specifically, the company had expected revenue for the More Personal Computing segment of between $10.75 billion and $11.15 billion as of Jan. 29

And while all other components of Q3 guidance remain unchanged, we expect those to join the same fate in the coming days, especially once Chinese enterprise demand falls of a cliff. Until then, however, Microsoft said that it (still) sees strong Windows demand in line with expectations.

The news sent Microsoft stock lower after hours...

... and hit Intel hard as a result of what appears to be a sudden shortfall for PCs, and by extension, CPUs.