Microsoft Q3 results: Profit rises 9% to $52.9 billion, shares jump 8.58%
1 min read 26 Apr 2023, 03:47 AM ISTMicrosoft said its cloud computing and artificial intelligence offerings lifted its revenue and profit in the first three months of this year.
PremiumMicrosoft shares rose 8.58% in extended trading on Tuesday after the software giant beat Wall Street's estimates for third-quarter resuits, driven by growth in its cloud computing and Office productivity software businesses.
Microsoft, which has made a huge bet on embracing AI technology from the makers of ChatGPT, reported profit of $18.3 billion, net income was up 9%. The overall company revenue increased 7% to $52.9 billion in the quarter ended March 31, according to a statement.
Microsoft said its cloud computing and artificial intelligence offerings lifted its revenue and profit in the first three months of this year.
"Across the Microsoft Cloud, we are the platform of choice to help customers get the most value out of their digital spend and innovate for this next generation of AI," Microsoft CEO Satya Nadella said.
The growth at cloud business Azure was 27% in the latest reported quarter aginst 31% in the prior quarter. The average estimate from analysts was 26.6% growth.
The overall revenue for Microsoft’s cloud Business, which included the Azure public cloud, Enterprise Services, SQL Server and Windows Server, was $22.1 billion, that is up 16%, slightly above estimates of $21.85 billion, the reports said.
The company's productivity and business process segment—which includes Office software and advertising sales for the Linked— posted $17.52 billion in revenue. The software giant said growth in revenue per user helped the company achieve 14% more revenue from commercial Office 365 productivity software subscriptions.
The sales of windows operating-system licenses declined 28%, with higher channel inventory levels hurting results. The overall personal computing segment, which includes Windows, Surface and Xbox, Bing, delivered $13.26 billion in revenue, down 9%.
Meanwhile, US stocks slipped on Tuesday on recession fears after weak earnings and soft economic data. The S&P 500 slumped 59.56 points, or 1.44%, at 4,077.48. The Dow Jones Industrial Average fell 335.19 points, or 0.99%, at 33,540.21. The Nasdaq Composite tanked 207.27 points, or 1.72%, at 11,829.93.
