US Markets

Microsoft beats quarterly revenue estimates, shares rise

Credit: REUTERS/CARLO ALLEGRI

Microsoft Corp beat Wall Street estimates for quarterly revenue on Tuesday, powered by growth in its flagship cloud computing business as the software giant continued to benefit from a global shift to work and learning from home.

Adds details on segments, Azure

Oct 27 (Reuters) - Microsoft Corp MSFT.O beat Wall Street estimates for quarterly revenue on Tuesday, powered by growth in its flagship cloud computing business as the software giant continued to benefit from a global shift to work and learning from home.

The shift to work from home has accelerated adoption of cloud-based computing, benefiting companies such as Microsoft, Amazon.com Inc's AMZN.O cloud unit and Alphabet Inc's GOOGL.O Google Cloud.

Microsoft said revenue in its "Intelligent Cloud" segment rose 20% to $13 billion in the first quarter, with 48% growth in Azure. Analysts had expected revenue of $12.7 billion, according to IBES data from Refinitiv.

The value of Microsoft's future recurring revenue contracts for commercial cloud customers held steady at $107 billion from the previous quarter and its proportion of one-time deals rose slightly. Investors often prefer recurring revenue contracts because they are more predictable over time.

Revenue from its personal computing division, which includes Windows software and Xbox gaming consoles, rose 6% to $11.8 billion.

The company's revenue rose 12% to $37.2 billion in the quarter ended Sept. 30, beating analysts' estimates of $35.72 billion.

Net income rose to $13.89 billion, or $1.82 per share, from $10.68 billion, or $1.38 per share, a year earlier. Analysts had expected a profit of $1.54 per share.

The software company's shares rose 1% to $215.40 in extended trading.

(Reporting by Akanksha Rana in Bengaluru, Stephen Nellis in San Francisco and Jane Lee in Oakland, California; Editing by Maju Samuel)

((akanksha.rana@thomsonreuters.com; Twitter: @AkankshaRanaa;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

MSFT AMZN GOOGL

Latest US Markets Videos

Nasdaq's Essner on OPEC+, Oil Market Outlook

Dec 03, 2021

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More