Microsoft Corp Earnings expectations were exceeded on Tuesday as revenue topped $ 40 billion for the first time in a quarter, earnings exceeded $ 15 billion, and stocks rose from their all-time high

Has made strong profits during the COVID-19 pandemic as companies rely on Azure cloud computing and cloud software offerings such as Teams to keep employees connected while they work from home Cloud segment sales and Personal Computers led the way on Tuesday’s report, slightly exceeding expectations as demand for PCs and remote computing power continued through 2020

For the vacation quarter, Microsoft reported profits of $ 1546 billion, or $ 2.03 a share on revenue of $ 431 billion, strong growth over the prior year quarter when Microsoft reported profits of $ 151 on revenue out of 36 $ 9 billion analysts expected an average profit of 1 US dollar for the second quarter64 a share of revenue of 40 $ 23 billion

Shares rose 4% in after-hours trading following the announcement, after the stock hit a new all-time high of $ 23233 in the regular session, surpassing an earlier record set on September 2, 2020. Microsoft shares rose 408% in the last 12 months as the Dow Jones Industrial Average
– which Microsoft counts as a component – has increased 68%

The product that has excited investors and analysts the most in recent years has been Azure, Microsoft’s cloud computing rival to Amazoncom Inc.’S
Amazon Web Services, or AWS, the company announced Tuesday that Azure grew 50% in the second quarter Microsoft does not provide actual financial performance from Azure, even if competitors such as Amazon and Alphabet Inc

Break up the power of your cloud computing offerings – and intelligent cloud revenue rose to $ 14.6 billion from $ 11 billion a year ago, analysts expect cloud revenue averaged $ 13, according to FactSet 77 billion

“This is a shot over the bug at Amazon and Bezos, they are gaining more and more shares against AWS,” Wedbush analyst Dan Ives told MarketWatch in a brief interview after the numbers were released on Tuesday. “Could be in a year this will be a head-to-head fight ”

Ives said that even those optimistic about Microsoft didn’t expect Azure to grow 50% Azure growth had steadily slowed, and Microsoft had grown 48% and over the previous two quarters, respectively 47% According to Ives, expectations were closer to 44% to 45%

Microsoft “is shooting at all cylinders and those numbers bring the stock to a market cap of $ 2 trillion,” said Ives

As PC sales increased due to work-from-home requirements and Microsoft began selling new Xbox consoles over the holiday season, Microsoft Personal Computing sales rose to $ 15 billion from $ 12 billion $ 1321 billion in the same quarter a year ago Analysts expect segment revenue to average $ 1347 billion, according to Microsoft, Xbox revenue grew 40% in the quarter, while Surface PC revenue rose 3%

Microsoft’s productivity and business services division, which includes cloud software assets like the Office suite as well as LinkedIn and other real estate, had revenue of $ 1335 billion from $ 11 billion a year ago Analysts expect an average revenue of $ 1289 billion

For the third quarter of the fiscal year, Microsoft again forecast sales of over 40 billion US dollars, with a forecast of 40 US $ 35 billion to 41 $ 25 billion. Analysts forecast an average sales of 38 US $ 74 billion before the report

GameStop appears to be in the middle of a brief press that has propelled its stock nearly 500% up over the past week

Jeremy Owens is MarketWatch’s technology editor and office manager in San Francisco. You can follow him on Twitter @ jowens510

Microsoft share

World news – USA – Microsoft achieves quarterly sales of 40 billion US dollars for the first time and reports record profits