Microsoft Corp. exceeded estimates of Wall Street on third-quarter revenue, driven by growth in its cloud computing and Office software businesses, showed results on Tuesday.
The actions of Microsoft They were earning 4% in after-market trading after announcing earnings of $2.45 a share, beating estimates from Wall Street of 2.23 dollars, according to data from Refinitiv, and 10% more than in the same quarter of the previous year.
The company’s revenue rose 7% to $52.9 billion in the quarter ended March, beating analysts’ median estimate of $51.02 billion, according to Refinitiv data.
The bulk of sales of Microsoft continues to come from the software and services of cloud computing to customers, though the company has grabbed the news this year with its partnership with OpenAI, creator of ChatGPT, and the addition of artificial intelligence technology to the Bing search engine.
Microsoft said that the growth of its business in the azure cloud was 27% in the last quarter, beating analyst expectations of 26.6%.
Analysts expected the gloomy economic outlook to hit the Windows business of Microsoftwhich depends heavily on sales of personal computers, which have fallen in recent quarters.
The drop in sales in this business was less severe than analysts had expected.
Microsoft posted revenue of $13.3 billion, compared with analyst estimates of $12.19 billion, according to Refinitiv data.
The company’s productivity area, which includes office and social network ad sales LinkedInalso beat market expectations with revenue of $17.5 billion versus estimates of $16.99 billion, according to Refinitiv.
Global revenue from the company’s cloud unit, which includes azure and other services, were $22.1 billion, slightly above estimates of $21.85 billion, according to Refinitiv data.
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