Microsoft profits up 21%, giving cushion for gaming push
Demand for Microsoft’s cloud-computing services and work software helped boost its quarterly profits by 21% as the pandemic kept many office workers at home
Demand for Microsoft’s cloud-computing services and work software helped boost its quarterly profits by 21% as the pandemic continued to keep many office workers at home.
The company on Tuesday reported fiscal second-quarter profit of $18.8 billion. The software maker posted revenue of $51.7 billion for the October-December period, up 20% from a year earlier.
Microsoft last week announced its plans to buy high-profile game publisher Activision-Blizzard for $68.7 billion, an all-cash deal that could be the priciest tech acquisition in history if it withstands scrutiny by antitrust regulators. It could also catapult the Xbox-maker ahead of Nintendo to join Sony and Tencent as one of the three biggest video game companies.
But the financial results revealed Tuesday show it's still business-focused products such as Microsoft's Azure cloud computing platform and its suite of software products that are driving the company's growth.
Net income of $2.48 per share beat Wall Street expectations. Analysts surveyed by FactSet were expecting Microsoft to earn $2.32 per share on revenue of $50.71 billion for the fiscal quarter.