Microsoft books profits as pandemic fuels cloud computing, Xbox sales

By Akshay Kedari  | Date: 2021-01-27

Microsoft books profits as pandemic fuels cloud computing, Xbox sales

Reportedly, American multinational technology firm Microsoft Corporation stated that its Azure cloud computing services witnessed a 50% growth in the second quarter, with the business benefitting from investment in working and learning from home.

Sources confirmed that the company’s shares increased by 5% in an extended trading post gaining 41% in 2020 as the pandemic shifted computing to areas where the company has placed bets. The software maker also witnessed a recovery in sales on the professional social network, LinkedIn, and piloted a chip shortage that posed a threat to its Xbox business.

The transition to work from home owing to the COVID-19 pandemic has compelled companies to adopt cloud-based computing, which in turn is benefitting Microsoft and competitors such as Amazon Web Services (AWS) and Google Cloud.

Microsoft executives reportedly stated that they expect sales from the "Intelligent Cloud" division of the company to hit a midpoint of USD 14.83 billion for the fiscal third quarter, compared with Wall Street’s estimates of USD 14.12 billion.

As per credible sources, sales are projected to have a corresponding midpoint of USD 13.48 billion and USD 12.50 billion for the personal computing segment and productivity segment of the company, compared with forecasts of USD 12.90 billion and USD 11.60 billion.

In its "Intelligent Cloud" segment, Microsoft said revenue grew 23% to USD 14.6 billion, with Azure recording growth of 50%. Whereas, a 41.4% growth had been expected by analysts.

Amy Hood, Microsoft CFO, mentioned that the growth was driven by constant customer demand, with more than expected consumption as clients have increased their focus on digital transformation.

During the second quarter-end, the total revenue of Microsoft spiked to USD 43.08 billion, from USD 36.91 billion a year earlier, exceeding analysts' expectations of USD 40.18 billion.

Source Credit –

https://www.reuters.com/article/us-microsoft-results/microsoft-earnings-rise-as-pandemic-boosts-cloud-computing-xbox-sales-idUSKBN29V2IN

 

About Author

Akshay Kedari     aeresearch.net

Akshay Kedari

A qualified computer engineering graduate, Akshay Kedari takes pride in having his way with words. Following his passion for content creation, he writes insightful pieces on aeresearch.net and a few other portals. Also endorsed with a short-term experience in web deve...

Read More >>

More News By Akshay Kedari

Google Fi confirms data breach, leaking millions of customer’s data

Google Fi confirms data breach, leaking millions of customer’s data

By Akshay Kedari

Google Fi, Google's cell network operator, has reportedly revealed a data breach, which is most likely related to the T-recent Mobile's security disaster, which allowed hackers to leak millions of customers' personal information. The p...

European semiconductor giant ASML forecasts a sales surge for 2023

European semiconductor giant ASML forecasts a sales surge for 2023

By Akshay Kedari

Dutch semiconductor company ASML has reportedly forecast a revenue jump for the year 2023 as the global semiconductor industry anticipates a reacceleration of growth during the second half of this year. According to the firm, its net sales  f...

Interfor Corporation acquires 100% equity interest in Chaleur Forest Products

Interfor Corporation acquires 100% equity interest in Chaleur Forest Products

By Akshay Kedari

Following this funding, Interfor's long-term debt will hold a weighted average interest of 5.30% Interfor registered a Net Debt to the Invested Capital ratio of nearly 10% as of October 31, 2022 Interfor Corporation, one of the world...

ESR's ARA and Export-Import Bank of China partner in a deal worth US$1B

ESR's ARA and Export-Import Bank of China partner in a deal worth US$1B

By Akshay Kedari

Leading real estate services and investment company, ESR Group Limited, has recently announced that its exclusively-owned subsidiary, ARA and the Export-Import Bank of China have inked a breakthrough collaboration in a deal worth USD 1 billion infras...

Circularise nabs $11M to bring circular economy to industrial supply chains

Circularise nabs $11M to bring circular economy to industrial supply chains

By Akshay Kedari

Leading software platform, Circularise recently announced that it has raised $11.3 million (€11 million) in funding as part of its Series A round in a bid to advance its mission to bring a circular economy to industrial supply chains. The fun...