Software Powerhouse Microsoft Corp beat Wall Street expectations for quarterly revenue on Tuesday. They have a strong demand for the software giant`s cloud-based services from the pandemic-triggered shift to hybrid work models.
Some companies lost big during the pandemic, but Microsoft profited big from it as individuals and organizations turned to products like Outlook and Teams workplace messaging app. People shifted their behavior as they were working from home during the pandemic.
But it seems like people loved the idea to work from home because after the economies opened up again, people and businesses tend to use a hybrid model of allowing staff to alternatively work from home. And that is strengthening Microsoft`s cloud services, including their flagship cloud offering Azure.
Microsoft reported revenue of $49,36 billion in the third quarter, compared with $41,7 billion a year earlier.
Net income rose to $16,73 billion, or $2,22 per share, in the quarter ended March 31, from $15,46 billion, or $2,03 per share, a year earlier.
«Continued customer commitment to our cloud platform and strong sales execution drove better-than-expected commercial bookings growth of 28% and Microsoft Cloud revenue of $23,4 billion, up 32% YoY,» Chief Financial Officer Amy Hood said in a news release.
For the current quarter, Microsoft expects to generate sales of $52,8 billion, based on the midpoint of its guidance. That matches Wall Street`s target for the June quarter. In the year-earlier period, it posted $46,2 billion in sales.
Microsoft stock fell 3,7% on Tuesday to close at 270,22 amid a broad market sell-off, but in after-hours trading (as I write this article), the stock is up 4,47%. It happened on a day were Nasdaq plummeted 3,7%, while Tesla went down 12,18%. I have been following Microsoft since the 90s, and this is one of the few that survived the dot-com bubble. This company continues to impress.