Microsoft Corp.’s (NASDAQ:MSFT) fiscal fourth-quarter revenue rose a better than expected 13% on strong demand for cloud-computing software and services.
Microsoft said that its sales rose to $38 billion U.S. in the quarter that ended on June 30 as a growing number of businesses used the company’s cloud-based software to keep workers connected remotely. The sales figure beat the $36.5 billion U.S. average estimate of analysts polled by Bloomberg. Net income was $11.2 billion U.S., or $1.46 U.S. a share. Analysts had expected $1.36 U.S. a share.
Microsoft’s corporate customers are signing up for subscriptions and online versions of its Office productivity software to take advantage of programs like the "Teams" communications application. Many companies are also accelerating transitions to internet-based computing services such as Microsoft’s “Azure” as they rely more on sprawling workforces that are unable to travel or come into office buildings.
Azure revenue rose 47% in the fourth quarter, slightly missing analysts’ predictions for a 49% gain. Microsoft shares slipped about 2% following the report. In the previous quarter, Azure revenue jumped 59%. Microsoft shares, which gained 29% in the June quarter, fell to $205.30 U.S. from $211 in extended trading Wednesday.
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