Microsoft recorded revenue growth above its fourth-quarter earnings forecast as a continuous shift to telecommuting boosted demand for cloud computing services.
Microsoft reported a 21% increase in revenue to $ 46.2 billion in the three months to June 30. This is above the analyst’s consensus estimate of $ 44.24 billion, according to Refinitiv’s IBES data.
Operating profit increased 42% to $ 19.1 billion and net profit increased 47% to $ 16.5 billion over the period.
The computing giant reported that earnings per share had almost halved to $ 2.17, surpassing analysts’ expectations of $ 1.92.
The move to telecommuting has boosted demand for Microsoft’s cloud services, and today, revenue for the’Intelligent Cloud’sector reached $ 17.4 billion, up 51% for Azure services and 30% for the entire quarter. Was announced.
Satya Nadella, Chairman and Chief Executive Officer of Microsoft, said:
“Our results will be seen in new franchises built on commercial clouds, games, security, etc., when they perform well in a differentiated way in large and growing markets and meet customer needs. Shows that it will generate growth, and LinkedIn has generated more than $ 10 billion in annual revenue over the last three years. “
Microsoft’s share price fell 2% in the news.
“It looks like Microsoft’s products will generate credible cash flow over the next few years,” said Steve Clayton, fund manager at Hargreaves Slansdown.
“Their Azure cloud computing division is the second largest player in the world and is growing like Topsy. Microsoft may be huge, but as these numbers show very clearly, It’s still growing at a pace.
“Few are more valuable than a cash-generating business with a dominant market position in a growing market. Microsoft is fully compliant with the bill, especially with an increasing percentage of revenue from regular sources such as Office 365. “We do,” said Clayton.
Given that some investors may have sought higher growth from Azure and the wider Nasdaq market was already pasting 1.2% today, the fall in after-hours trading stock prices is “It’s not surprising,” Clayton added.
Microsoft exceeds Wall Street’s expectations for the surge in demand for cloud computing
Source link Microsoft exceeds Wall Street’s expectations for the surge in demand for cloud computing