"On a significant base, server products and cloud services revenue increased 19 per cent and 21 per cent in constant currency". Wall Road had anticipated income growth of only 9 per cent and unchanged earnings. The Azure business grew 59% in the previous quarter, before the full weight of the pandemic hit.
Some of the key announcements made during the event include, enhancements to Azure Lighthouse by bringing Multi-Factor Authentication and Privileged Identity Management support; Azure Stack HCI, the latest in Microsoft's hybrid portfolio and now in public preview, that brings hybrid capabilities to customers' datacenters while enabling them to leverage existing skills and investment; and new bundled services for Lenovo Managed Services that are created to help small- and medium-sized businesses support Microsoft software productivity, security, and collaboration.
Satya Nadella, chief executive, said that this year's crisis had added momentum to a strong change to cloud computing, with quite a few businesses for the initially time looking at switching to digital technologies in purchase to make their enterprises far more resilient.
Shares in Microsoft slipped 2.2 percent, to $207.09 a share, in after-hours trading Wednesday.
Microsoft's Intelligent Cloud business, which comprises its Azure public cloud service, GitHub, Windows Server, SQL Server and its enterprise services, reported revenue of $13.37 billion, up 17% from a year ago.
Revenue from the unit, the largest by sales, rose 14 per cent to US$12.9 billion, beating analysts' estimates of US$11.46 billion.
Within that segment, Xbox gaming service revenues rose 65 per cent and sales for its Surface devices were up 28 per cent.
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It also includes employees at nursing homes, meatpacking and food processing plants, and clothing sellers, like Macy's and H&M. CVS The pharmacy giant requires all customers wear face coverings at its 9,900-plus stores across the country as of July 20.
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Census, with reports showing that 62.2% of the country has already responded since April. Updated at 2:25 p.m.to add statement from Mo Brooks.
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Even internet service providers, social media platforms, online gaming and other services were impacted, Forbes reported. That tweet even included an ominous map that showed a supposed influx of traffic to the US from other countries.
"Some of the bulls were hoping for more of a beat", said Dan Ives, an analyst at Wedbush Securities. "You saw a surge in demand but that demand is starting to level off a bit", Mr. Thill said of the boost to Microsoft's cloud business in the early months of the pandemic. The segment enjoyed "better than expected performance across all businesses, as we continued to benefit from work, learn and play from home scenarios", CFO Amy Hood said. But some cloud customers also have been looking to cut costs as they grapple with the effects of the economic downturn from the coronavirus outbreak. Ms Hood forecast revenue for the Productivity division will range from US$11.65 billion to US$11.9 billion, below the US$12.16 billion average estimate of analysts polled by Bloomberg.
Microsoft shares have climbed about 34% since the beginning of the year.
Microsoft's total revenue rose 13% to $38.03 billion in the quarter, beating estimates of $36.5 billion, according to IBES data from Refinitiv.
Microsoft Teams is helping people be together even when they are apart. The Redmond, Wash. -based company was early in shifting employees to remote working when Covid-19 cases spread across the U.S.
And LinkedIn, which it acquired for more than $26 billion in 2016, is dealing with weakened demand for its recruitment services and soft advertising spending during the pandemic.
The earnings numbers come as Microsoft's LinkedIn social network announced today that it will lay off 960 of its employees.
Investors pushed Microsoft's stock 29 per cent higher in the June quarter. Slack is asking the European regulator to force Microsoft to sell Teams as a stand-alone product.
"Surface was another highlight for Microsoft", Moorhead said.