Microsoft beats Q3 estimates; reports Azure, Office 365 strength

Terry Joseph
April 27, 2018

Microsoft's cloud business such as Azure and the Office 365 is still the number one cash cow for the firm.

"We delivered double-digit revenue and operating income growth driven by 58% growth in our commercial cloud revenue". While this may seem like no growth, this is likely a good thing as the previous quarter was a holiday season which means there was not a dramatic post-holiday decline in active users.

Microsoft reports third quarter earnings that showed a 16 percent increase in revenue to $26.8 billion. "We are innovating across key growth categories of infrastructure, AI, productivity, and business applications to deliver differentiated value to customers", he added.

In the company's Productivity and Business Processes division, which includes Office 365, revenue rose 17 percent over a year ago to $9 billion but was almost flat compared to last quarter.

"With consistent investment and strong sales execution, this quarter we achieved better than expected performance across all segments", declared chief bean counter Amy Hood.

Office 365 now has 30.6 million consumer subscribers and on the commercial side of the coin, the company has 135 million subscribers.

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Thanks in part to its colossal cloud business, Microsoft earnings are drenching shareholders in dollars. Those results beat analyst expectations of $0.85 per share on $25.78 billion revenue.

Wall Street has been modeling for the tech icon to earn 99 cents a share, up 1%, on sales of $27.92 billion, up 20%, in its fiscal fourth quarter.

Revenue in the company's More Personal Computing division, which includes its Windows PC business, Surface products and gaming teams rose 13 percent $9.9 billion for the quarter.

Microsoft also saw an 18 percent in gaming revenue from its Xbox software and services, and a 32 percent rise from its Surface devices.

Microsoft saw its stock fall as much as 2.5 percent last night despite a positive result.

Other reports by Free-Prsite

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