A new round of lockdowns to fight the spread of the coronavirus could spell disaster for the economic recovery.
Microsoft Corp beat Wall Street estimates for quarterly revenue on Tuesday, powered by growth in its flagship cloud computing business as the software giant continued to benefit from a global shift to remote work and e-learning.
The shift to work from home has accelerated adoption of cloud-based computing, benefitting companies such as Microsoft, Amazon.com Inc’s cloud unit and Alphabet Inc’s Google Cloud.
Microsoft said revenue in its “Intelligent Cloud” segment rose 20 percent to $13bn in the first quarter, with 48 percent growth in Azure. Analysts had expected revenue of $12.7bn, according to IBES data from Refinitiv.
The value of Microsoft’s future recurring revenue contracts for commercial cloud customers held steady at $107bn from the previous quarter and its proportion of one-time deals rose slightly. Investors often prefer recurring revenue contracts because they are more predictable over time.
Revenue from its personal computing division, which includes Windows software and Xbox gaming consoles, rose 6 percent to $11.8bn.
The company’s revenue rose 12 percent to $37.2bn in the quarter ended September 30, beating analysts’ estimates of $35.72bn.
Net income rose to $13.89bn, or $1.82 per share, from $10.68bn, or $1.38 per share, a year earlier. Analysts had expected a profit of $1.54 per share.
The software company’s shares rose 1 percent to $215.40 in extended trading.