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Microsoft sees steady cloud growth after record quarterly profit - Netscape Money & Business


Microsoft sees steady cloud growth after record quarterly profit
By Akanksha Rana and Julia Love
Reuters
(Reuters) -Microsoft Corp posted its most profitable quarter on Tuesday, beating Wall Street expectations for revenue and earnings, as PC sales declines stemming from a global chip shortage were more than made up for by a boom in cloud services.
Shares ticked up 0.7% after Microsoft projected that growth in its Azure cloud computing business will continue apace following a quarter in which sales climbed 51%.
Overall revenue rose 21% to $46.2 billion, beating analysts consensus by about $2 billion, according to IBES data from Refinitiv.
The pandemic-driven shift to remote work has boosted consumer appetite for cloud-based computing, helping companies including Microsoft, Amazon.com Inc s cloud unit and Alphabet Inc s Google Cloud. ....

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Microsoft Tops Estimates; Azure Growth Trend Spooks Inv...


Sales in the fourth quarter, which ended June 30, climbed 21% to $46.2 billion, the Redmond, Washington-based company said Tuesday in a statement. That compared with the $44.3 billion average estimate of analysts polled by Bloomberg. Net income rose to $16.5 billion, or $2.17 a share, while analysts had predicted $1.92.
Microsoft’s market value now tops $2 trillion, and the high-flying shares have led investors to expect results to outdistance projections by a wide margin. After years of investments to make Azure a strong No. 2 in cloud services behind Amazon.com Inc., investors no longer question Chief Executive Officer Satya Nadella’s corporate transformation, but some become skittish at any indication that momentum is fading. Microsoft’s sales and margin forecasts on a conference call reassured investors about its prospects, and shares gained 1.2% in extended trading after first dropping about 2.5% following the report. ....

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