Microsoft Corp beat Wall Street expectations for quarterly revenue on Tuesday, as demand soared for the software giant’s cloud-based services with more people working and learning remotely.
The pandemic-driven shift to remote work has boosted consumer appetite for cloud-based computing, helping companies including Microsoft, Amazon.com Inc’s cloud unit and Alphabet Inc’s Google Cloud.
Microsoft said revenue in its “Intelligent Cloud” segment rose 30% to $17.4 billion, with a 51% growth in its Azure cloud-computing business. Analysts had expected a 43.1% growth in Azure, according to consensus data from Visible Alpha.
Revenue from its personal computing division, which includes Windows software and Xbox gaming consoles, rose 9% to $14.1 billion.
The company’s revenue rose 21% to $46.2 billion in the fourth quarter ended June 30, beating analysts’ consensus estimate of $44.24 billion, according to IBES data from Refinitiv.