Microsoft shares rise after solid third quarter growth across the board | #microsoft | #hacking | #cybersecurity

Microsoft’s Cloud and cybersecurity sectors saw significant growth, while Xbox reported its best non-holiday quarter for revenue.

Microsoft continues to report solid growth, with a quarter that exceeded analyst expectations in earnings and revenue.

The software giant’s revenue in its third fiscal quarter of the year stood at $49.4bn, an 18pc increase from the same quarter last year, while its earnings per share reached $2.22. These figures exceeded Refinitiv analyst expectations, CNBC reported.

Following the earnings report, shares for Microsoft surged by around 6pc in extended trading yesterday (26 April).

Microsoft’s net income reached $16.7bn, a year-on-year increase of 8pc, while its operating income rose by 19pc, reaching $20.4bn.

Similar to the previous quarter, Microsoft’s cloud revenue continues to see significant growth, increasing by 32pc to $23.4bn. This includes $19.1bn from Intelligent Cloud, an increase of 26pc, while Azure and other cloud services saw a 46pc year-on-year increase.

“Going forward, digital technology will be the key input that powers the world’s economic output,” Microsoft chair and CEO Satya Nadella said. “Across the tech stack, we are expanding our opportunity and taking share as we help customers differentiate, build resilience, and do more with less.”

Another core strength for Microsoft is it’s cybersecurity business, which reached $15bn in revenue for the quarter.

LinkedIn revenue grew by 34pc while Microsoft Outlook saw a 12pc increase, the same quarter that Outlook’s prices went up.

Microsoft’s gaming business saw steady growth, with Xbox revenue rising by 6pc. Xbox hardware revenue grew by 14pc and overall, it has been reported as the best non-holiday quarter for Xbox revenue.

This is the same quarter where Microsoft announced its next big play in the gaming sector, with plans for a $69bn acquisition of Activision Blizzard.

The software giant has made notable moves in the gaming space in recent years. In March 2021, it got approval from the EU to acquire video game company Bethesda for $7.5bn, in what was its largest ever gaming deal.

The acquisition of Activision Blizzard now dwarfs that purchase and Microsoft’s previous biggest deal overall – its $26bn acquisition of LinkedIn in 2016.

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