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Microsoft revealed that revenue in the Intelligent Cloud increased by 23% to $15.1 billion.
Technology company Microsoft Corporation (NASDAQ: MSFT) has exceeded analysts’ estimates in its fiscal third-quarter (Q3), posting its biggest revenue growth since 2018. Microsoft announced its financial results for its fiscal third quarter (Q3) earnings on the 27th of April. Following the announcement, Microsoft shares declined 2.62% in after-hours trading. MSFT stock is currently down 2.05% at a premarket trading price of $256.59. The company’s fiscal third-quarter (Q3) ended on the 31st of March.
Microsoft Records 19% Increase in Fiscal Q3 Revenue
Analysts, according to Refinitiv, had estimated that Microsoft’s revenue would be $41.03 billion. However, Microsoft’s revenue for the fiscal Q3 stood at $47.71 billion. In the report, Microsoft said it had 19% annualized revenue growth for the quarter. The 19% growth signifies the highest quarterly increase the company has seen since 2018. The gains can be partly attributed to increase in PC sales. There has been a boom in PC sales since the last year during the coronavirus pandemic.
According to the financial result, Microsoft’s adjusted earnings per share for the quarter was $1.95. This is a gain over analysts’ expectations of $1.78 per share. In addition, diluted earnings per share surged 45% to $2.03 GAAP.
Furthermore, operating income climbed 31% to $17 billion. Also, net income increased 44% to $15.5 billion GAAP and advanced further by 38% to $14.8 billion non-GAAP.
Notably, Microsoft said that Microsoft Cloud fueled the fiscal Q3 results. The company’s CEO Satya Nadella commented:
“Over a year into the pandemic, digital adoption curves aren’t slowing down. They’re accelerating, and it’s just the beginning. We are building the cloud for the next decade, expanding our addressable market and innovating across every layer of the tech stack to help our customers be resilient and transform.”
Microsoft Cloud Business Rises
Microsoft’s vice president and chief financial officer Amy Hood said the Microsoft Cloud has continually provided value to customers. Hood said that the Cloud business generated $17.7 billion in revenue, a 33% jump year-on-year.
Further in the announcement, Microsoft revealed that revenue in the Intelligent Cloud increased by 23% to $15.1 billion. Additionally, the tech giant returned $10 billion to stakeholders. The funds were distributed in the form of share repurchases and dividends in fiscal Q3.
“Every quarter Microsoft delivers hundreds of products, either as new releases, services, or enhancements to current products and services. These releases are a result of significant research and development investments, made over multiple years, designed to help customers be more productive and secure and to deliver differentiated value across the cloud and the edge,” explained the company.
Data compiled by MarketWatch showed that Microsoft stock has been performing well in the last twelve months. The tech company’s stock has added 47.65% over the past year and has grown 17.78% since 2021 began. Also, MSFT has increased 12.48 in the last three months and advanced further by 11.111% over the past month. In the last five days, Microsoft shares are up 0.53%.
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Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.
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