Fiscal fourth-quarter profit report from Microsoft is out and it shows a profit of $16.5 billion. It is up by 47% if compared to the same period of the year 2020. It exceeds the Wall Street expectation by giving a net income of $2.17 per share. The software giant revealed that its revenue of $46.2 billion in the quarter that ended on June 30.
“We are innovating across the technology stack to help organizations drive new levels of tech intensity across their business,” said Satya Nadella, chairman and chief executive officer of Microsoft, in a statement.
“Our results show that when we execute well and meet customers’ needs in differentiated ways in large and growing markets, we generate growth, as we’ve seen in our commercial cloud – and in new franchises we’ve built, including gaming, security, and LinkedIn, all of which surpassed $10 billion in annual revenue over the past three years,” he added.
It was expected by analysts that the tech company would earn $1.91 per share for the April-June quarter on revenue of $44.1 billion. Thanks to the cloud computing service and other relevant software for remote work and study, which made sure Microsoft’s profit soared throughout the pandemic. The company shared successfully recovered after initial dip in afterhours trading.
“As we closed out the fiscal year, our sales teams and partners delivered a strong quarter with over 20% top and bottom-line growth, highlighted by commercial bookings growth of 30% year over year,” said Amy Hood, Microsoft’s chief financial officer of . “Our commercial cloud revenue grew 36% year over year to $19.5 billion.”
Products like cloud computing, remote work & productivity applications that compete with the likes of Amazon and other companies, have helped the company to shoot its revenue growth. The company’s historical pillar — personal computing — grew just 9% in the quarter.
Microsoft noted that supply issues were affecting its personal-computing division, including for its Surface and Windows products. The company recently unveiled the next generation of Windows, called Windows 11, its first major update in six years. It will be available later this year.
The tech giant said that its personal computing division and surface products division is being affected by supply issues that is prevalent. Microsoft also said that its Windows 11, an update to long running Windows 10, will be out later this year.