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Microsoft forecasts double-digit revenue growth due to high demand for cloud services
By Arghyadeep Dutta - Apr 26, 2022, 10:18 PM ET
Last Updated - Feb 23, 2024, 10:01 AM EST
The software giant expects to report revenue between $52.4 billion and $53.2 billion in the fiscal fourth quarter, Microsoft Chief Financial Officer Amy Hood said during the earnings call
• Estimates to generate revenue between $52.4 billion and $53.2 billion in Q4
• Revenue from Azure and other cloud computing jumped 46% in last quater
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Microsoft Corp (NASDAQ: MSFT) forecasted double-digit revenue growth for the next fiscal year. This was primarily driven by demands for its cloud computing services as the pandemic triggers a shift to hybrid work models.
The software giant expects to report revenue between $52.4 billion and $53.2 billion in the fiscal fourth quarter, Microsoft Chief Financial Officer Amy Hood said during the earnings call.
The range median, i.e., $52.8 billion, is just below the $52.95 billion consensuses among Wall Street analysts.
Microsoft forecasts revenue of $21.1 billion and $21.35 billion from its Intelligent Cloud business unit in the next quarter, driven by strong growth in its Azure platform in the booming cloud computing space.
Shares jumped over 6.5% higher in after-hours trade after the upbeat forecast.
Financial data
Microsoft reported better-than-expected third-quarter earnings, bolstered by strong demand for Azure.
The Richmond-based software giant’s revenue jumped 18% to $49.36 billion in the third quarter compared to a year earlier, while analysts, on average, had expected revenue of $49.05 billion.
Net income rose to $16.73 billion, or $2.22 per share, in the quarter ended March 31, from $15.46 billion, or $2.03 per share, same period last year.
Earnings report said revenue from Microsoft’s cloud service Azure, enterprise solution Dynamics 365, server, and Linkedin businesses grew by more than 30% each year over year.
Revenue from Azure and Dynamic 365 jumped 46% and 35% in the quarter, the highest among all, indicating individuals and enterprise customers are turning to Microsoft’s various products, like Outlook and Teams, to communicate during both the hybrid mode of working and learning from home, making the software giant a pandemic winner.
Picture Credit: FT
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