Even though Azure sales grew more slowly, compared to the same period last year, Microsoft still managed to hit its targets for the quarter.
Azure has recorded revenue growth of 76 per cent in the second quarter, that ended on December 31 last year. The same result was recorded a quarter before. This is somewhat less compared to the year before, when Azure has recorded a 96 per cent jump.
“Our strong commercial cloud results reflect our deep and growing partnerships with leading companies in every industry including retail, financial services, and healthcare,” Microsoft Chief Executive Satya Nadella said in a statement.
Microsoft's forecasted revenue hovered between $29.4 billion and $30.1 billion for the current quarter, while analysts were looking at $29.9 billion.
The company's total revenue hit $32.47 billion, representing a 12.3 per cent jump. This is just below the $32.51 billion estimates from Wall Street analysts.
“Clearly the company is spending aggressively to double down on its cloud bet, a dynamic that is a smart move but caps margin upside in the quarter,” said Daniel Ives, an analyst at Wedbush Securities.
Even though cloud is a major player for Microsoft, its personal computing division is still largest by revenue. With growth of seven per cent, it hit $13 billion, similar to what analysts had expected ($13.07bn).
The company reported $8.42 billion in profits.
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