Microsoft Earnings: What Happened with MSFT

^{Source: Predictions based on analysts’ consensus from Visible Alpha}

Microsoft (MSFT) Financial Results: Analysis

Microsoft Corporation (MSFT) reported Q3 FY 2021 earnings that beat analyst expectations. Adjusted earnings per share (EPS) came in well above what analysts had forecast. Revenue also beat analyst estimates. Microsoft’s Azure cloud revenue grew 50% year over year (YOY), surpassing expectations. Microsoft does not disclose Azure revenue in dollars in its earnings report. The company’s shares were down more than 3% in after-hours trading. Over the past year, Microsoft’s shares have provided a total return of 52.1%, above the S&P 500’s total return of 45.5%.

MSFT Azure Revenue

Azure is Microsoft’s cloud computing platform that offers developers, IT professionals, and enterprises a suite of tools and services that can be used for networking, storage, mobile and web application services, artificial intelligence (AI), Internet of Things (IoT), and a range of other computing needs. Microsoft’s platform captured an approximately 20% share of the global cloud market as of the end of the 2020 calendar year. Azure is second only to Amazon.com, Inc.’s (AMZN) Amazon Web Services in terms of global cloud market share.

Azure’s cloud services are only becoming more important as commerce continues to shift online, a trend that has been accelerated by the COVID-19 pandemic. “Over a year into the pandemic, digital adoption curves aren’t slowing down,” said CEO Satya Nadella. Revenue for Microsoft’s Intelligent Cloud segment, which includes Azure, was $15.1 billion, up 23% compared to the year-ago quarter.

Microsoft did not provide any forward guidance in its earnings press release.

Check back later for coverage of the key points of Microsoft’s earnings call.

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