Microsoft Corporation (NASDAQ: MSFT) this Thursday posted second-quarter revenue and earnings that beat analysts’ estimates, driven by the strong growth in its cloud business.
The tech giant said revenue increased 17% to USD 30.1 Billion in the quarter ended June 30th, 2018. Analysts’ polled by Thomson Reuters had projected revenue of USD 29.21 Billion.
The robust financial results are boosted by its cloud computing business. The Company said revenue from Intelligent Cloud rose 23% to USD 9.6 Billion. Azure revenue jumped 89%. The Company didn’t disclose exact number for Azure. The Company also focuses on the Commercial Cloud Product, including Office 365 productivity software, Dynamics 365 business software and the Azure public cloud. Commercial cloud revenue grew 53% year-over-year to USD 6.9 Billion.
“We had an incredible year, surpassing USD 100 Billion in revenue as a result of our teams’ relentless focus on customer success and the trust customers are placing in Microsoft,” said Satya Nadella, Chief Executive Officer of Microsoft. “Our early investments in the intelligent cloud and intelligent edge are paying off, and we will continue to expand our reach in large and growing markets with differentiated innovation.”
Microsoft shares rose 2.6% to USD 107 per share in the early trading on Friday. The stock was up 25% this year.
Microsoft's gaming revenue also witnessed strong growth. Gaming revenue increased 39%, with Xbox software and services revenue growth of 36%, driven by third party title strength