Microsoft profit up 24% in quarter, driven by cloud growth

Analysts had been looking for revenue of $44 billion, according to FactSet Research

AP, Redmond,

Oct 27 2021, 04:53 ist
updated: Oct 27 2021, 04:55 ist

Microsoft posted revenue of $45.3 billion in its fiscal first quarter, up 22 per cent from last year. Credit: Reuters File Photo

Growth in Microsoft's cloud computing business helped push its profit up 24 per cent in the July-September quarter over the same time last year.

The Redmond, Washington-based tech company on Tuesday reported quarterly profit of $17.2 billion, or $2.27 per share, beating Wall Street expectations of $2.08 per share.

Microsoft profits have soared throughout the pandemic thanks to ongoing demand for its software and cloud computing services for remote work and study.

Microsoft posted revenue of $45.3 billion in its fiscal first quarter, up 22 per cent from last year. Analysts had been looking for revenue of $44 billion, according to FactSet Research.

Sales from what Microsoft calls its "intelligent cloud" segment, which includes server products and its Azure cloud computing platform, were $17 billion, up 31 per cent from a year ago. The company has been fiercely competing with Amazon, Google and other cloud providers for big business and government contracts.

There was relatively slower growth in Microsoft's personal computing business segment, which includes Windows software licenses for new computers. Sales in the segment grew by 12 per cent to $13.3 billion.

Microsoft has been unveiling the next generation of its Windows software, called Windows 11, its first major update in six years, but the PC market has also been hit by supply chain problems.