Revenue for its flagship product Azure grew 89% in the fourth quarter, which ended June 30. Its shares rose slightly in the post-closing operations after the results were published.
Much of Microsoft’s recent growth has been driven by the cloud computing business, which has taken advantage of the fact that companies want to move their workflow to the cloud to reduce data storage and software costs.
“The combination of the cloud, which is a mega trend that will continue over the next few years, and management – this is a company that knows how to sell and be innovative – is difficult to match,” said Tom Taulli, analyst at InvestorPlace. .com.
Azure has a 16% share of the global cloud infrastructure market, making it the second largest provider of services after Amazon Web Services of Amazon.com Inc., according to April estimates from research firm Canalys.
Revenue in Microsoft’s productivity and business unit, which includes Office 365, increased 13.1% to US $ 9,670 million, surpassing the analysts’ average expectation of US $ 9.650 million, according to Reuters.
The net profit increased to US $ 8,870 million, or US $ 1.14 per share, in the fourth quarter, from US $ 8,070 million, or US $ 1.03 per share, a year earlier.
Revenues increased to US $ 30,090 million from US $ 25,610 million.
If some items are excluded, Microsoft earned $ 1.13 per share against analyst expectations of $ 1.08.