Microsoft Corp.’s fiscal fourth-quarter revenue rose 13 per cent, signalling persistently strong demand for cloud-computing software and services that are helping businesses keep workers connected from afar.
Sales rose to US$38 billion in the quarter that ended June 30, the software maker said Wednesday in a statement. That exceeded the US$36.5 billion average estimate of analysts polled by Bloomberg. Net income was US$11.2 billion, or US$1.46 a share, including a charge of five cents US per share Microsoft took for closing its retail stores. Analysts had expected US$1.36 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 app. Many companies are also accelerating transitions to internet-based computing services like Microsoft’s Azure as they rely more on sprawling workforces that are unable to travel or come into offices. Azure revenue rose 47 per cent in the fourth quarter, slightly missing analysts’ predictions for a 49-per-cent gain, and Microsoft shares slipped about two per cent following the report. In the previous quarter, Azure revenue jumped 59 per cent.
Shares, which gained 29 per cent in the June quarter, had risen 1.4 per cent to US$211.75 Wednesday in New York trading. They fell to US$205.30 in extended trading.
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