Cloud Business Lifts Microsoft Profits to Record: Live Updates
Microsoft reported its most profitable quarter ever on Tuesday, as the pandemic accelerated the shift of work and school to online services.
Sales for the quarter that ended in September were $37.2 billion, up 12 percent from a year earlier, and profits rose 30 percent to $13.9 billion. Typically Microsoft’s largest quarters come from those that end in December, when customers lock in deals before the new year, and in June, when Microsoft’s own fiscal year ends.
The results beat analyst expectations, and the company’s stock rose more than 3 percent in after-hours trading. The company’s market value has surpassed $1.6 trillion.
Satya Nadella, Microsoft’s chief executive, has talked about how the pandemic accelerated the transition to cloud computing, which makes it easier to operate remotely. Revenue from Microsoft’s core cloud computing platform, Azure, grew 48 percent in the quarter.
Large companies and other organizations accelerated their commitments to buy more cloud services in the future. “It is a good sign of the broader economic mindset of a lot of customers,” said Mike Spencer, the head of Microsoft’s investor relations.
People stuck at home have been playing more video games, sending revenue from Microsoft’s Xbox services up 30 percent. Sales of personal computers have also grown during the pandemic, as more people work and learn from home, boosting subscriptions to Microsoft’s lucrative online Office suite, which includes Excel, Word and the collaboration program Teams.
Article source: https://www.nytimes.com/live/2020/10/27/business/us-economy-coronavirus