Microsoft today reported its financial results for the quarter ended March 31, 2020.
Microsoft’s sales numbers were ahead of analysts estimates, EPS was $1.40 against the estimate of $1.26 and the revenue was $35 billion against the estimate of $33.6B. Operating income was $13 billion and it increased 25%. Net income was $10.8 billion it and increased 22%.
As expected, Microsoft’s solid financial results were driven mainly by Office 365 and Azure cloud services.
“We’ve seen two years’ worth of digital transformation in two months. From remote teamwork and learning, to sales and customer service, to critical cloud infrastructure and security – we are working alongside customers every day to help them adapt and stay open for business in a world of remote everything,” said Satya Nadella, chief executive officer of Microsoft. “Our durable business model, diversified portfolio, and differentiated technology stack position us well for what’s ahead.”
“In this dynamic environment, our sales teams and partners executed a solid third quarter, with Commercial Cloud revenue generating $13.3 billion, up 39% year over year,” said Amy Hood, executive vice president and chief financial officer of Microsoft. “We remain committed to balancing operational discipline with continued investments in key strategic areas to drive future growth.”
Expecting strong earnings results, Microsoft stock was up 4.31% percent today before the market was closed.
As you can see from the numbers, coronavirus (COVID-19) had minimal net impact on Microsoft’s total revenue. But, Microsoft explained the full nature of the impact so that investors can understand what is exactly going on. You can read about it in detail here.