Microsoft Corp forecasted a strong end to the calendar year propped by its booming cloud business.
Yet, the tech behemoth said supply chain woes will continue to hit key units such as those producing its Surface laptops and Xbox gaming consoles.
The company beat Wall Street expectations for its fist quarter ended Sept. 30, with pandemic-induced demand for the software giant’s cloud-based services driving sales.
First-quarter revenue growth for Azure, Microsoft’s flagship cloud-computing business, came in at 48% in constant currency to beat analysts’ estimates of 47.5%, according to consensus data from Visible Alpha.
Revenue at the firm’s other business units that house Windows software, the Teams messaging service and LinkedIn professional social networking platform also beat analyst expectations.
Microsoft’s revenue from selling Windows to PC makers grew 10% year over year, beating the overall PC market, which only grew 3.9% over the same period because of supply constraints, according to data from IDC.
Overall, revenue rose 22% to $45.32 billion in the first quarter ended Sept. 30, beating expectations of about $43.97 billion.
Net income rose to $20.51 billion, or $2.71 per share. The company said its results included a $3.3 billion net income tax benefit.
On an adjusted basis it earned $2.27 per share, trumping analyst expectations of $2.07 per share.