Microsoft Corp. reported positive results across the board Tuesday afternoon, underscoring cloud momentum and artificial intelligence traction.
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Azure and other cloud services companies reported revenue growth of 28% on a constant currency basis in the fiscal second quarter. Analysts expected Azure constant currency revenue growth of 27% for the period under review.
Overall, Microsoft reported revenue of $62.0 billion in the latest quarter, up from $52.7 billion a year earlier. Analysts estimated $61.1 billion.
“By embedding AI into every layer of our technology stack, we are winning new customers and helping drive new benefits and productivity gains across every industry,” CEO Satya Nadella said in a statement.
The company generated $19.2 billion in revenue from its Productivity and Business Processes segment, which houses Office. Analysts estimated $18.6 billion.
Intelligent cloud revenue rose 20% to $25.9 billion, while the FactSet consensus was $25.3 billion.
The More Personal Computing segment, which includes Xbox and Windows, saw revenue rise 19% to $16.9 billion, beating the consensus forecast of $16.8 billion.
Microsoft typically offers an outlook on its earnings call.
In the latest quarter, Microsoft reported net income of $21.9 billion, or $2.93 per share, up from $16.4 billion, or $2.20, in the year-earlier quarter . Earnings per share came in above the consensus forecast of $2.79.
Microsoft shares are up 21% over the past three months and 69% over 12 months.
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