Today Microsoft has reported its quarterly earnings for third quarter 2019. The tech giant’s shares increased in the extended session, which pushed it towards a $1 trillion market crown. Its cloud sector continued to boost and stimulate the company’s revenues. On Wednesday, the software giant rocked in after-hours training when shares soared more than 4%. The Q3 results are much better than thought. For the third quarter, Microsoft announced revenues worth $30.6 billion along with the net income of $8.8 billion. Company’s services like Windows, Xbox/gaming, Surface businesses and search advertising played a crucial role in the strong performance.
Shares of the Redmond, Washington-based company soared by 4.4%, which stimulated its position ahead of Apple. Though Apple Inc. has $980 billion market cap. Microsoft reporting includes three reporting segments: Intelligent Cloud, Productivity and Business Processes, and More Personal Computing. Under the influence of Productivity group, the company earned revenue up 14% worth $10.2 billion. Along with this, it had increasing operating income 28% to $4 billion. Reportedly, intelligent cloud revenue was up 22% to $9.7 billion. Microsoft’s leading cloud product, Azure, is competing with another leading service provider AWS (Amazon Web Services). The cloud service had a satisfactory quarter revealing revenue growth 73%. Overall revenue of the tech giant’s intelligent cloud sector reported proceeds of $9.7 billion, up 22% as that of 2018.
Amy Hood, Microsoft’s chief financial officer, said people are seeking Microsoft’s cloud offerings. Due to the increased demand, commercial cloud revenue boosted to $9.6 billion in the third quarter. Amy added the proceeds are up by 41% annually. She said the company continues to drive growth in revenue and operating income. The company’s sales teams, partners, and targeted strategic investments had played a crucial role in stimulation. Amy noted the company hopes $10.55 billion to $10.75 billion on account of productivity and business processes in the fourth quarter. For the third quarter fiscal 2019, Azure gained 73% rise, and Commercial sales of Office 365 rose 30%. Besides, Xbox software and gaming services revenue rose 12% from as that of last year.
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