(Reuters) – Microsoft Corp beat analysts’ estimates for fourth-quarter revenue and profit on Thursday, lifted by growth in its flagship cloud product Azure and Office software.
Since Chief Executive Officer Satya Nadella took over in 2014, Microsoft has been focusing more on cloud-based services, while reducing its reliance on Windows operating system software.
That strategy has helped Microsoft tap booming demand for cloud-based services, making it the most valuable company, with a market capitalization of about $1.04 trillion (£833.40 billion).
Revenue growth in Azure was 64% in the reported quarter, compared with 89% a year earlier and 73% in the prior quarter.
Revenue in Microsoft’s productivity software unit jumped 14.3% to $11.05 billion, powered by double-digit revenue growth for LinkedIn and Office 365. Analysts on average had expected revenue of $10.71 billion, according to IBES data from Refinitiv.
Microsoft’s net income rose to $13.19 billion, or $1.71 per share, in the quarter ended June 30 from $8.87 billion, or $1.14 per share, a year earlier. (https://bit.ly/2JDI8Jq)
Excluding items, the company earned $1.37 per share, topping estimates of $1.21 per share.
Total revenue rose 12% to $33.72 billion, above average analysts’ estimates of $32.77 billion.
Shares of Microsoft rose nearly 1% to $137.62 in extended trading.
(Reporting by Vibhuti Sharma in Bengaluru; Editing by Anil D’Silva)