On Tuesday, Microsoft announced its earnings for the first fiscal quarter of 2021. The figures included in the report revealed that the technology company performed significantly better than what analysts predicted.
The main takeaway came in the form of Microsoft’s quarterly revenue. The company raked in $37.2 billion, exceeding its target of $35.76 billion. As a result, Microsoft’s earnings per share was $1.82 exceeding the company’s expected figure of $1.55.
Arguably the biggest surprise from the report came from Microsoft’s Intelligent Cloud business. This business unit exceeded all expectations during this fiscal quarter, ultimately proving to be the main driving force behind the company’s stock growth.
Microsoft’s cloud business segment enjoyed a 20% revenue growth during this fiscal quarter, with its Azure platform growing by a staggering 48%. Commercial cloud revenue enjoyed a 31% increase.
In a recent report, Wedbush analyst Dan Ives attributed Microsoft’s cloud business growth heavily to the shift in working conditions caused by the coronavirus pandemic.
“In many cases, we are seeing enterprises accelerate their digital transformation and cloud strategy with Microsoft by 6 to 12 months as the prospects of a heavy remote workforce for the foreseeable future now looks in the cards with this COVID-19 backdrop,” he explained. Microsoft is now valued at over $1.5 trillion.
