Microsoft has reported its latest quarterly earnings, smashing Wall Street expectations on strong cloud growth.
Microsoft reported revenue of $51.7 billion, an increase of 20% from the year-ago quarter. Earnings per share came in at $2.48, an increase of 22%. In contrast, analysts were expecting the company to report $50.1 billion, and earnings per share of $2.31. Similarly, net income came in at $18.8 billion, an increase of 21%.
Microsoft is currently the second-largest cloud provider, behind AWS and ahead of Google Cloud. The company’s cloud results didn’t disappoint, growing by 32% year-over-year to $22.1 billion.
“Digital technology is the most malleable resource at the world’s disposal to overcome constraints and reimagine everyday work and life,” said Satya Nadella, chairman and chief executive officer of Microsoft. “As tech as a percentage of global GDP continues to increase, we are innovating and investing across diverse and growing markets, with a common underlying technology stack and an operating model that reinforces a common strategy, culture, and sense of purpose.”
“Solid commercial execution, represented by strong bookings growth driven by long-term Azure commitments, increased Microsoft Cloud revenue to $22.1 billion, up 32% year over year” said Amy Hood, executive vice president and chief financial officer of Microsoft.