Microsoft notches slight Q3 earnings beat as cloud revenue rises 26%

Tue, Apr 26, 2022, 7:15 AM 1 min read

Revenue: $49.4 billion versus $49 billion expected
Adjusted EPS: $2.22 versus $2.19 expected
Productivity and business processes: $15.8 billion versus $15.8 billion expected
Intelligent cloud: $19.05 billion versus $18.9 billion expected
More personal computing: $14.5 billion versus $14.3 billion expected

During the quarter, Microsoft's all important Intelligent Cloud business saw revenue increase by as much as 26% year-over-year to $19.1 billion. The firm's Azure business, meanwhile, rose 46% year-over-year.

Microsoft's More Personal Computing segment, which includes sales of Windows 11 and its Xbox and Surface lines, jumped 11% year-over-year to $14.5 billion, with its advertising business rising 23% year-over-year.

Microsoft’s earnings follow a huge miss by Netflix, which reported losing 200,000 users, and Snap’s (SNAP) own disappointing report in which the company missed analysts' expectations on profits and sales.

Microsoft is also in the process of acquiring video game giant Activision Blizzard (ATVI). The $68.7 billion deal came saddled with baggage from accusations of widespread racial and sexual discrimination and harassment at Activision.

Last week, California Governor Gavin Newsom was accused of interfering in a state investigation into Activision Blizzard’s workplace issues to the benefit of Activision Blizzard.