Microsoft Corporation announced that its revenue, operating income and net income all increased in the third quarter.
According to an April 25 news release, Microsoft cited the strength of its cloud computing platform as a key factor in its growth.
“The world’s most advanced AI models are coming together with the world’s most universal user interface – natural language – to create a new era of computing," Microsoft Chairman and CEO Satya Nadella said in the release. "Across the Microsoft Cloud, we are the platform of choice to help customers get the most value out of their digital spend and innovate for this next generation of AI.”
The release reported the results for the quarter ending March 31, as compared to the same time in the previous fiscal year. Revenue climbed by 7% to $52.9 billion, up 10% in constant currency. Operating income climbed by 10% to $22.4 billion, up 15% in constant currency. In constant currency, net income increased 14% to $18.3 billion, up 9%. Earnings per share after dilution were $2.45 and up 10%, up 14% in constant currency.
Revenue in productivity and business processes climbed by 11% to $17.5 billion, up 15% in constant currency, the release reported. Office 365 drove a 13% rise in revenue for commercial products and cloud services, up 17% in constant currency.
A 14% increase in commercial revenue, Microsoft 365 Consumer customers increased to 65.4 million, up 18% in constant currency, and income from Office Consumer products and cloud services increased by 1%, up 4% in constant currency, according to the release.
Revenue at LinkedIn rose by 8%, or 10% in constant currency, the release said. Dynamics 365 revenue growth of 25%, up 29% in constant currency, was the primary driver of the Dynamics products and cloud services revenue gain of 17%, up 21% in constant currency.
“Focused execution by our sales teams and partners in this dynamic environment resulted in Microsoft Cloud revenue of $28.5 billion, up 22% year-over-year,” Amy Hood, executive vice president and chief financial officer of Microsoft, said in the release.
Microsoft's success in the cloud computing space is due to its focus on innovation and meeting the needs of its customers, the release reported. With the growth of the digital economy, Microsoft's cloud platform is well-positioned to continue its upward trajectory.
