What happened Shares of VMWare (NYSE: VMW) have jumped today, up by 7% as of 11:30 a.m. EDT, after the virtual computing specialist reported first-quarter earnings. The results beat expectations for both the top and bottom lines. So what Revenue in the first quarter increased 12% to $2.73 billion, compared to the consensus estimate of $2.65 billion in sales. That resulted in adjusted net income of $640 million, or $1.52 per share. Analysts were modeling for just $1.20 per share in adjusted profits. Subscription and software-as-a-service (SaaS) revenue soared 39% to $572 million, and remaining performance obligation (RPO) was $10.1 billion at the end of the quarter. Image source: Getty Images. "In these unprecedented times, we delivered solid performance and strong execution in [fiscal] Q1 FY21," CEO Pat Gelsinger said in a statement. "Ensuring the safety and well-being of our employees and addressing our customers' rapidly changing needs have been our top priorities." Now what COVID-19 has not impacted VMWare that badly directly. Many enterprise customers are continuing with cloud migration projects, Gelsinger noted on the conference call with analysts. However, the pandemic is creating considerable macroeconomic uncertainty and volatility, which could impact IT spending. In terms of outlook, the economic environment is making it difficult to accurately forecast metrics, but VMWare expects revenue in the second quarter to be approximately $2.8 billion, with an adjusted operating margin of 28%. That should translate into adjusted earnings per share of $1.24. VMWare had previously withdrawn its full-year guidance and is not reinstating its outlook for the year. 10 stocks we like better than VMwareWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and VMware wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of April 16, 2020 Evan Niu, CFA has no position in any of the stocks mentioned. The Motley Fool recommends VMware. The Motley Fool has a disclosure policy.Source