Microsoft Corp. rode better-than-expected growth in its Azure cloud-computing unit to sizable revenue and earnings beats Tuesday, and its shares were moving higher in the aftermarket.
The company said revenue for Azure and other cloud services was up 29%, or 28% in constant currency in the fiscal first quarter. Microsoft’s
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forecast had been for 25% to 26% constant-currency Azure revenue growth, while the company posted 27% constant-currency growth on the metric in the June period. The FactSet consensus called for 25.6% growth in constant currency.
Microsoft’s cloud-computing unit, dubbed Intelligent Cloud, saw a 19% bump in revenue to $24.3 billion. Analysts were looking for $23.5 billion.
Shares were up more than 5% in Tuesday’s after-hours trading.
Overall revenue rose to $56.5 billion from $50.1 billion a year before, while analysts were modeling $54.5 billion.
The company logged September-quarter net income of $22.3 billion, or $2.99 a share, whereas it earned $17.6 billion, or $2.35 a share, in the year-prior period. Analysts tracked by FactSet were expecting $2.65 in earnings per share.
Microsoft recorded $18.6 billion in revenue for its productivity and business processes unit, up 13% from a year earlier, or up 12% on a constant-currency. That segment of the business includes LinkedIn and Office. Analysts had been looking for $18.2 billion in segment revenue.
Revenue for Microsoft’s More Personal Computing segment, which houses Windows and Xbox content and services, rose 3% to $13.7 billion and was up 2% on a constant-currency basis. The FactSet consensus called for $12.9 billion.
The company said it would provide forward guidance on the earnings call, which begins at 5:30 p.m. Eastern time.
