Microsoft has announced its financial results for Q2 of the fiscal year 2021, revealing a hugely positive performance by the companyâ€™s cloud computing solutions.Â
For the three months up to December 31, 2020, Microsoft recorded a 50% growth in revenue for its Azure cloud computing services when compared with the corresponding period of the previous fiscal year.
The COVID-19 pandemic has undoubtedly had a significant impact on Microsoftâ€™s financial results. The ongoing focus on remote working and remote learning in many countries has been a real boon for cloud solution providers â€“ something clearly reflected in the companyâ€™s FY21 Q2 results.
â€œWhat we have witnessed over the past year is the dawn of a second wave of digital transformation sweeping every company and every industry,â€� Satya Nadella, Microsoftâ€™s chief executive officer, said. â€œBuilding their own digital capability is the new currency driving every organizationâ€™s resilience and growth. Microsoft is powering this shift with the worldâ€™s largest and most comprehensive cloud platform.â€�
Revenue from Microsoftâ€™s Intelligent Cloud business reached $14.6 billion in the quarter, an increase of 23%, while server products and total cloud services revenue expanded by 26%. Meanwhile, enterprise services revenue increased by 5% and enterprise mobility grew by 29%.
In addition, the company was boosted by an unexpected sales recovery around its employment-oriented social network LinkedIn, which posted revenue growth of 23%. Xbox sales also beat analyst expectations, which had trended downwards after reports of stock shortages. Revenue from Microsoftâ€™s personal computing division, which includes Windows software as well as its Xbox gaming consoles, reached $15.1 billion in the quarter â€“ outperforming estimates of $13.5 billion.
Microsoft shares rose 5% following the announcement of its financial results. Clearly, while many businesses continue to struggle as a result of the coronavirus pandemic, some companies are experiencing sizeable economic benefits.
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