Microsoft beats revenue estimates on cloud boost

(Reuters) - Microsoft Corp beat analysts' estimates for fourth-quarter revenue and profit on Thursday, lifted by growth in its flagship cloud product Azure and Office software. Since Chief Executive Officer Satya Nadella took over in 2014, Microsoft has been focussing more on cloud-based services, while reducing its reliance on Windows operating system software.

Reuters July 19, 2019 04:05:35 IST
Microsoft beats revenue estimates on cloud boost

Microsoft beats revenue estimates on cloud boost

(Reuters) - Microsoft Corp beat analysts' estimates for fourth-quarter revenue and profit on Thursday, lifted by growth in its flagship cloud product Azure and Office software.

Since Chief Executive Officer Satya Nadella took over in 2014, Microsoft has been focussing more on cloud-based services, while reducing its reliance on Windows operating system software.

That strategy has helped Microsoft tap booming demand for cloud-based services, making it the most valuable company, with a market capitalisation of about $1.04 trillion.

Revenue growth in Azure was 64% in the reported quarter, compared with 89% a year earlier and 73% in the prior quarter.

Revenue in Microsoft's productivity software unit jumped 14.3% to $11.05 billion, powered by double-digit revenue growth for LinkedIn and Office 365. Analysts on average had expected revenue of $10.71 billion, according to IBES data from Refinitiv.

Microsoft's net income rose to $13.19 billion, or $1.71 per share, in the quarter ended June 30 from $8.87 billion, or $1.14 per share, a year earlier. (https://bit.ly/2JDI8Jq)

Excluding items, the company earned $1.37 per share, topping estimates of $1.21 per share.

Total revenue rose 12% to $33.72 billion, above average analysts' estimates of $32.77 billion.

Shares of Microsoft rose nearly 1% to $137.62 in extended trading.

(Reporting by Vibhuti Sharma in Bengaluru; Editing by Anil D'Silva)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

France, Germany to agree to NATO role against Islamic State - sources
| Reuters
World

France, Germany to agree to NATO role against Islamic State - sources | Reuters

By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States

China's Xi says navy should become world class
| Reuters
World

China's Xi says navy should become world class | Reuters

BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.