Microsoft reported Tuesday that its quarterly revenue grew at one of the strongest rates in years as the company poised to surpass a market value of $ 2 trillion.
Revenue rose to $ 41.7 billion in the third quarter of the fiscal year, up 19 percent year over year. This is the largest quarterly increase since 2018. Income rose 44 percent to $ 15.5 billion. The results exceeded both the company’s and Wall Street’s expectations, underscoring that Microsoft and other major tech companies were winners from the coronavirus pandemic.
“Over a year after the pandemic began, the digital adoption curves are not slowing down,” said Satya Nadella, CEO of Microsoft, in a statement. “You speed up.”
Revenue from commercial cloud products reached $ 17.7 billion, up 33 percent year over year. Sales for Azure, Microsoft’s flagship cloud computing space, grew 50 percent, while commercial Office 365 products grew 22 percent as corporate customers ran their computers and other tools in the cloud.
According to the Synergy Research Group, Microsoft has taken over Amazon’s leadership position in cloud computing. Amazon has about a third of the growing market and Microsoft has exceeded 20 percent market share.
Personal computing product sales rose 19 percent to $ 13 billion for the quarter as people bought more computers and moved to new devices with bigger screens to study and work from home during the pandemic . Game revenue increased 50 percent due to spending on the new Xbox game console launched late last year and Xbox content and services.
The company also benefited from currency fluctuations as well as a tax court ruling in India.