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Microsoft’s net profit climbed in the three months to the end of September by 48 percent year-on-year to 20.5 billion dollars (17.7 billion euros), as the group announced on Tuesday after the US market closed. The sharp increase was also due to a tax credit worth billions. The company’s revenues grew 22 percent to $ 45.3 billion. The figures exceeded expectations, the share initially rose slightly after the trading hours.
Above all, the cloud business with the Azure platform, which supplies IT services and storage space to many other companies and apps, continued to boom with a 50 percent increase in sales. Microsoft continues to benefit from the home office trend. The PC division increased revenues by twelve percent. In addition to Windows software, hardware products such as the Xbox game console or the recently ailing business with “Surface” tablets are also located here. The career network Linkedin, which belongs to the group, posted strong growth, with sales increasing by 42 percent in the most recent quarter.
Microsoft before another record high after strong numbers
Microsoft’s shares hit another record high on Wednesday after the software company announced unexpectedly good quarterly figures. In NASDAQ trading, the paper recently traded 4.59 percent higher at $ 324.34. The day before they had reached a high of $ 312.39. In the ranking of the most valuable companies in the world, the group continues to catch up with Apple.
Thanks to its flourishing cloud services, Microsoft earned splendidly in the past fiscal quarter. The net profit climbed – also because of a multi-billion dollar tax credit – by 48 percent. Sales increased by 22 percent. This was more than analysts expected. Above all, the cloud business with the Azure platform, which provides IT services and storage space in the network, continued to boom. The career network LinkedIn, which belongs to the group, also increased its revenues significantly.
The news generated positive reactions from all analysts. The software giant surprised both with its results and with the sales outlook for the current fiscal quarter, wrote analyst Brent Thill of the investment bank Jefferies. The sustainable growth drivers such as the Azure cloud platform are intact. Mark Murphy of JPMorgan praised the metrics underlining the continued strength of the cloud business, and raised his profit forecasts for 2022 and 2023.
Kash Rangan from Goldman Sachs also praised the group’s strong performance. With a view to the price rally in the current year, the expert emphasized that this was driven by rising profit expectations and not – as in the tech sector in general – by just a more demanding valuation.
In the current year, the Microsoft share has gained around 40 percent. The course has increased sixfold over the past five years. Meanwhile, Microsoft is worth $ 2.33 trillion on the stock exchange and is only slightly behind the leader Apple with 2.47 trillion.
Finanzen.net / REDMOND editorial team (dpa-AFX)
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