Azure revenue up 46%, in line with estimates
Microsoft announced quarterly revenues and profitability that were above analysts’ expectations, thanks to a robust rise in cloud service demand.
Reading profits increased to $16.7 billion, or $2.22 per share, matching analysts’ average sales and earnings expectations.
Revenue grew by 18% to $49.4 billion.
Satya Nadella, Microsoft’s CEO, has converted the firm’s two major cloud businesses, Azure and online Office, into growth engines that help protect the company from supply chain flaws that diminish PC and Xbox console availability.
Azure, which is second only to Amazon.com Inc. in the market for cloud infrastructure services, computing power, and storage delivered over the Internet, saw a 46 percent increase, which is in line with the pace of the second quarter and analysts’ expectations.
After the revelation, Microsoft shares fluctuated between gains and losses in prolonged trade, finally surging to $289 per share.
Although the company’s shares rose 51 percent in 2021, they are down 20 percent this year with sliding technology equities, falling 3.7 percent to $270.22 after trading in New York on Tuesday.