Microsoft Corp on Wednesday came posting Wall Street beating profit and sales for its fiscal third quarter, largely because of increase in demand of its online chat and meeting app Teams and its gaming service Xbox as the people around the world spending more time in working or playing games while remaining at homes during lockdown orders.
Chief Executive Officer Satya Nadella remain focused in expanding company’s cloud computing business after taking the wheel six years ago and the current quarterly results are depicting the outputs of those efforts. More of the companies are now strengthen their computing powers by tapping into Microsoft’s data centers, a business in which Amazon.com Inc’s Amazon Web Services (AWS) is holding most of the market.
Microsoft’s business-unit forecasts for fiscal fourth quarter came below what analysts have been estimating as the company is seeing sales of small-business software and LinkedIn may face difficulties during that quarter.
Microsoft is not ultimately immune from impact of GDP growth which is declining almost all around the world, Nadella told investors on a conference call.
Powered by sales of Windows operating system and Surface devices, coming on the heels of increasing demand because of people under lockdowns orders have to upgrade their personal computers to become able to work from home, benefitted Microsoft’s quarterly revenues to surge. The company also saw its Xbox Live gaming service engaging all-time-high number of people with number of active user reaching 19 million.
Microsoft’s Intelligent Cloud segment which houses Azure, posted a revenue growth of 27% to reach $12.28 billion which came above $11.87 billion as was estimating analysts on average, according to IBES data from Refinitiv.
Company’s third-quarter revenue came beating analysts’ estimates with an increase of 15% to $35.02 billion against the estimates of $33.66 billion, while its net income of $10.75 billion or $1.40 per share also came above from year ago income of $8.81 billion, or $1.14 per share.