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VMware shares slide despite strong Q2 results

The company reported Q2 revenue of $2.17 billion, up 13 percent year over year.

VMware released second quarter financial results after the bell on Thursday, beating market estimates. The virtualization giant reported a net income of $644 million, or $1.56 per share. The income includes a gain of $231 million from VMware's investment in Pivotal Software, the company said.

Non-GAAP earnings were $1.54 per share on a revenue of $2.17 billion, up 13 percent year over year. Wall Street was looking for earnings of $1.49 per share with revenue of $2.14 billion.

VMware's license revenue came to $900 million, an increase of 19 percent year over year. Services revenue was $1.2 billion.

In statement, CFO Zane Rowe said the quarter was driven by "strong operational performance across the business. Product license bookings grew double-digits year-over-year in all major product categories."

In terms of guidance, analysts expect VMware to report Q3 earnings of $1.49 per share on revenue of $2.16 billion. Shares of VMware were down almost four percent after hours.