Cloud boosts Microsoft’s strong third quarter

Microsoft posted strong results across the board for its third quarter 2022, with total revenue up 18% year-over-year to $49.4 billion, largely driven by the continued growth of its cloud products. Net profit for the quarter was $16.7 billion.

Microsoft is bundling its public cloud services Azure, SQL Server, Windows Server and enterprise services as Intelligent Cloud, which generated $19.1 billion in revenue in the quarter, up 26% year-on-year. Azure and other cloud services alone jumped 46% in the quarter.

Microsoft CEO Satya Nadella told analysts that “it was a record third quarter,” thanks in large part to “the continued strength of Microsoft Cloud.”

Nadella also said businesses are adopting Windows 11 at a faster rate than any previous version of the operating system, as exemplified by the 11% growth of its personal computing division, which generated $14.5 billion. dollars of revenue.

Revenue from enterprise productivity software, including Office 365, increased 12% for the quarter and the number of consumer Office 365 subscribers reached 58.4 million, 8 million more than at the same time last year.

Despite the strong results, Microsoft Chief Financial Officer Amy Hood said the company expects the ongoing war in Ukraine to continue to impact business towards the end of the fiscal year, with an “impact of approximately $110 million” on revenue but “minimal impact” on operating expenses. .

Copyright © 2022 IDG Communications, Inc.

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