Microsoft consistent growth in its cloud computing business has helped its profit spiral to about 24 percent in the July-September quarter over the same time last year.
Microsoft had reportedly beaten Wall Street Journal expectation of $2.08 per share when on Tuesday; the tech company announced a quarterly profit of $17.2 billion, $2.27 per share.
The Coronavirus pandemic was an eye-opener for many brands as a lot of them have to make do with adapting to the new arrangements occasioned by lockdown and restricted movements and, with the Washington-based software company successfully soaring through the pandemic as a result of the never-ending demand for its software and cloud computing services for remote work and study.
In its first fiscal quarter, Microsoft posted a $45.3 billion revenue, a 22 percent increase of last year’s earnings, with FactSet Research opining that analysts were looking for a $44 billion revenue but after-hours trading, Microsoft stock rose to almost 2 percent.
The sales from the company’s ‘intelligent cloud segment’, that included server products and its Azure cloud computing platform were reported at $17 billion, a 31 percent increase over a year.
The Microsoft Inc, which has been in fierce competition with Amazon, Google and other cloud providers for big business and government contracts, had a relatively slower growth in its personal computing business segment, which includes Windows software licenses for new computers, with sales in the segment growing by 12% to $13.3 billion.
The Bill Gates and Paul Allen founded brand has in recent times been unveiling its next-gen Windows software, the Windows 11, incidentally its first major update in 6 years but has grossly been affected by the supply chain market that has recently hit the PC market.
With income from LinkedIn jobs networking service increasing to 42 percent from the same time last year, Microsoft had earlier in October announced the halt of its localized version of LinkedIn in mainland China, citing tightening government restrictions affecting the only major Western social networking platform still operating in the country.
Even though LinkedIn itself hasn’t gone public on its exact revenue generating figure form China, but it boasts of having more than 54 million members in the country, its third-largest user base after the U.S. and India.
Microsoft ranked 21 in the 2020 Fortune 500 rankings of the largest United States corporations by total revenue, and as of 2016, the company is the world’s largest software maker. The American multinational technology corporation is considered one of the Big Five companies in the United States information technology industry, alongside Google, Apple, Amazon, and Facebook.