Microsoft beat Wall Street’s expectations for profit and revenue in the fiscal third quarter, benefiting from demand for cloud computing services, driven by hybrid working models.
The company’s shares rose about 1% in the after-market after the results were published.
The company reported revenue of $49.36 billion in the quarter, up from $41.7 billion a year earlier. Analysts, on average, had expected revenue of $49.05 billion, according to Refinitiv data.
The 46% annual revenue growth for the Azure cloud computing division was flat from the immediately preceding three months and in line with the 45.6% annual growth estimates compiled by Visible Alpha. Still, Azure’s growth showed a slowdown from fiscal 2020, when growth was in the 60% range.
Microsoft’s net income rose to $16.73 billion, or $2.22 per share, in the quarter ended March 31 from $15.46 billion, or $2.03 per share, a year earlier. Analysts, on average, had expected earnings of $2.19 per share.