Microsoft Corporation on Tuesday beat Wall Street expectations for quarterly earnings, buoyed by strong demand for the software giant’s cloud-based services due to the pandemic-driven shift to hybrid working models.
People and organizations turned to Microsoft’s various products, such as messaging apps for the workplace Outlook and Teamsto communicate during the shift to working and learning from home, which made the company a winner in the pandemic.
As economies reopen, businesses are increasingly switching to a hybrid model that allows staff to work alternately from the office and home. This is resulting in continued strength for Microsoft cloud services, including its flagship cloud offering, Azure.
The company reported income of $49.36 billion in the third quarter, compared to $41.7 billion a year earlier. Analysts on average had expected revenue of $49.05 billion, according to Refinitiv IBES data.
Net income increased to $16.73 billion, or $2.22 per share, in the quarter ended March 31, from $15.46 billion, or $2.03 per share, a year earlier.
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