Microsoft Reports Strong Third Quarter Results, Driven by Cloud Strength
Earnings Exceed Expectations
Redmond, Washington – April 25, 2024 –
Microsoft Corp. (MSFT) today announced its financial results for the third quarter of fiscal year 2024, ended March 31, 2024. The company reported revenue of $52.7 billion, an increase of 18% year-over-year. Net income rose by 22% to $18.8 billion, resulting in earnings per share of $2.32, surpassing analyst estimates of $2.28.
Cloud Revenue Drives Growth
The company's cloud business continued to be a major growth driver. Microsoft's Intelligent Cloud segment revenue grew by 20% to $20.3 billion. This growth was fueled by strong demand for Azure, the company's cloud computing platform. Azure revenue increased by 37% year-over-year.
Other Business Highlights
* Revenue from Microsoft's Productivity and Business Processes segment increased by 15% to $15.8 billion, driven by strength in Office 365 and Dynamics 365. * Surface revenue declined slightly by 2% to $2.2 billion, impacted by supply chain constraints. * Xbox revenue increased by 3% to $4.5 billion, driven by the launch of new games and continued growth in Game Pass subscriptions.
Outlook
For the fourth quarter of fiscal year 2024, Microsoft expects revenue to be between $53.5 billion and $54.5 billion, slightly above analysts' estimates. The company also anticipates continued growth in its cloud business.
Analyst Commentary
Analysts praised Microsoft's strong results and its continued focus on cloud computing. "Microsoft is firing on all cylinders right now," said Daniel Ives of Wedbush. "The company's cloud business is a juggernaut, and its other segments are also performing well. We believe Microsoft is well-positioned for continued growth in the years to come."
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