Microsoft Exceeds Expectations With Its 3rd Quarter Earnings!

Microsoft (NASDAQ: MSFT) announced its third-quarter earnings for fiscal year 2021, surpassing Wall Street's expectations on both the top and bottom lines after the market close on Tuesday. The company's revenue reached $ 41.7 billion, up 19 percent from the previous year, surpassing the 17 percent growth recorded in the last quarter. Similarly, earnings per share increased by 45 percent to $ 2.03. Revenue from Microsoft's productivity and business processes segment increased 15 percent to $ 13.6 billion. This is an increase driven by sales increases of 22 percent for Office 365 and 45 percent for Dynamics 365. During the earnings statement, CEO Satya Nadella stated that Microsoft Teams has reached 145 million daily active users, which is almost double the 75 million daily active users reported last year. This is a sign of the ongoing demand for video conferencing and collaboration solutions during teleworking. Microsoft's sales revenue in the Smart Cloud segment increased 26 percent to $ 15.1 billion, driven by a 50 percent increase in revenue from the company's cloud computing business, Microsoft Azure. While this is an impressive number, it is a sign of slowdown compared to the 59 percent growth achieved in the same quarter last year. Finally, Microsoft's personal computing products revenue increased 19 percent to $ 13 billion. Xbox has been the main growth factor in this segment. Game sales grew by 50 percent last November, taking advantage of the acceleration of the Xbox Series X and Series S launch. As a reaction to slowing growth in Microsoft Azure, which represents a significant part of the tech giant's long-term potential, shares fell by 3 percent following the announcement. Microsoft shares have increased 14 percent year-to-date and 45 percent in the last 12 months.   Microsoft Exceeds Expectations With Its 3rd Quarter Earnings! Source: https://www.fool.com/ You may also be interested in: 3 Stocks That Could Be Held For The Next 20 Years - Starbucks!