San Francisco: Microsoft said its revenue and profit climbed in the recently ended quarter, getting results from its bets on cloud computing services and artificial intelligence.
The US tech giant reported its net income increased 10% to $8.8 billion on revenue that was up 17% to $30.1 billion when compared with the same period last year.
Microsoft saw revenue gains across its full range of businesses including business services, gaming, internet search ads, its consumer software including Windows and Office and LinkedIn, the recently acquired professional social network. Shares were up more than three percent to $107.80 in after-hours trading following the release of earnings for the quarter ending the fiscal year quarter for Microsoft. “We had an incredible year,” chief executive Satya Nadella said. “Our early investments in the intelligent cloud and intelligent edge are paying off, and we will continue to expand our reach in large and growing markets with differentiated innovation.”
Microsoft executives told analysts they expected another year of growth, with demand for computing on the rise and the technology giant well-positioned in that market. “We’re investing aggressively to build Azure as the world’s computer,” Nadella said, referring to Microsoft’s cloud computing platform.
$26.2 bn –Microsoft bought LinkedIn two years ago in a deal valued at $26.2 billion.
- Global Equities Research analyst Trip Chowdhry described Microsoft earnings and its financial path as “super solid,’ noting that revenue beat expectations.
$16.6 bn –Microsoft reported net income of $16.6 billion for the fiscal year on revenue that rose 14 % to $110.4 billion.
Technology partnerships with major firms
- Analyst Patrick Moorhead at Moor Insights & Strategy said Microsoftalt39s results showed healthy growth.
- In a major deal announced this week, Microsoft and Walmart unveiled a strategic partnership to help the retail giant ramp up its efforts against Amazon.
- Microsoft has announced technology partnerships with other major firms in recent months including GE, Starbucks, Bayer, Spainalt39s Telefonica and sports organizations such as the NBA and PGA. Microsoft 365 is now a multibillion-dollar business.