One thing we’ve learned over the past year: The COVID-19 pandemic has been terrible for mankind, but a godsend for most of the big tech companies. This is truer than ever for Microsoft, which announced a 19% increase in revenue for the third quarter ($ 41.7 billion) compared to last year. Even more impressively, the company’s profits jumped 44% to $ 15.5 billion. Microsoft narrowly exceeded expectations of Wall Street analysts, who predicted it would reach $ 41.05 billion in revenue in the quarter, according to Yahoo finance.
The reason for Microsoft’s success is not difficult to understand. Information workers are relying on the cloud and corporate digital services more than ever, a trend that won’t slow until they start returning to their desks. (And it’s unclear whether office footfall will ever return to Before Times.) Microsoft says its Azure business revenue is up 50% from last year, while its overall Intelligent Cloud revenue is up 22% (reaching $ 15.1 billion).
“More than a year after the start of the pandemic, digital adoption curves are not slowing down. They are accelerating, and this is just the start, ”Microsoft CEO Satya Nadella said in a statement. “We are building the cloud for the next decade, expanding our addressable market, and innovating at every level of the technology stack to help our customers be resilient and transform.”
There weren’t a lot of downsides to the business during the quarter. Its more personal computing segment, which includes Windows, Xbox and Surface devices, reached $ 13 billion (up 19%). And although Microsoft did not reveal specific sales figures for Xbox, it said console sales were up 232% from last year. No surprise there: Everyone is still trying to grab an Xbox Series X and S.
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