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Microsoft revealed that Office Commercial products and cloud services spiked 12% in FY 2022 Q3.
Tech giant Microsoft Corporation (NASDAQ: MSFT) reported impressive earnings for its fiscal year (FY) 2022 third-quarter (Q3), surpassing expectations. The technological company surged 6% in extended trading on 26th April as revenue and profit rose in the quarter over analysts’ predictions.
Microsoft said it saw $2.22 in its adjusted earnings per share, slashing through the $2.19 analysts expected. Also, earlier forecasts were that the company would account for $49.05 billion in revenue. However, the American multinational company announced revenue of $49.36 billion in the quarter. At writing, MSFT stock is up 4.51% to $282.40 in after-hours trading.
Microsoft Reports FY 2022 Q3 Earnings
Apart from surpassing projections in FY 2022 Q3, the revenue Microsoft amassed is 18% higher than revenue reported in the same quarter in the previous year. Operating income also gained 19% to $20.4 billion, while net income was $16.7 billion.
The shift to remote work caused by the global health crisis has resulted in increased demand for Microsoft cloud services and software. For the FY 2022 Q3 ended on 31st March, Microsoft saw revenue rise in Product and Business Processes, Intelligent Cloud, and More Personal Computing. Under Product and Business Processes. Microsoft revealed that Office Commercial products and cloud services spiked 12% in FY 2022 Q3. According to the company, the revenue was fueled by a 17% revenue growth in Office 365 Commercial.
At the same time, Office Consumer products and cloud services revenue added 11%, and subscribers of Microsoft 365 Consumer also grew to 58.4 million. Furthermore, the tech comp accounted for a 34% revenue increase in LinkedIn. Also, Dynamics products and cloud services revenue surged 22%.
In addition, revenue in Intelligent Cloud was $19.1 billion as Server products and cloud services revenue gained 29%. More Personal Computing accounted for $14.5 billion in revenue, Windows OEM revenue jumped 11%, and Windows Commercial products and cloud service profit increased 14%. Also, Xbox content and services revenues added 4%, Search and news advertising revenue minus traffic acquisition cost grew 23%, and Surface revenue advanced 13%.
In the official report of the FY 2022 Q3, Microsoft chairman and CEO Satya Nadella commented:
“Going forward, digital technology will be the key input that powers the world’s economic output. Across the tech stack, we are expanding our opportunity and taking share as we help customers differentiate, build resilience, and do more with less.”
Microsoft’s Recent Acquisition
During the quarter, Microsoft said it was planning to acquire American video game company, Activision Blizzard. The company said it was buying Activision Blizzard for $68.7 billion, its largest transaction since its inception.
Except for gaining 3.15% over the past year, MSFT has been recording losses. The company declined nearly 20% since the beginning of January and lost 6.33% in the last three months. Over the past month, Microsoft stock has plunged 14.33% and has reduced by 5.29% in the last five days.