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Microsoft. Profit rises 20% with cloud services and artificial intelligence
US group Microsoft today presented quarterly sales and profit results above market expectations, driven by increased corporate demand for cloud and artificial intelligence services.
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Tech Microsoft
Net income rose 20% to $21.9 billion (around €20.4 billion), or $2.94 earnings per share, a benchmark on Wall Street, above the average $2.82 expected by analysts.
In the first three months of the year, it was the cloud service (enables storage and access to computer systems and applications via the Internet) that exceeded expectations.
The Intelligent Cloud division, which includes 'data centers', servers and 'software', saw revenue rise 26%, the fastest pace in two years.
This division now accounts for about 43% of Microsoft's revenue, which is increasingly moving away from its historical business model, which was based exclusively on the 'windows' operating system and its 'software' package.
Microsoft also recorded growth in its other two major divisions, Business Services (+12%) and Personal Computing (+17%), which includes 'windows', and the XBox console devices.
Sales of content and services related to the latter soared (+62%), thanks to the integration of video game publisher Activision Blizzard.
In total, total revenue amounted to $61.9 billion (€57.7 billion), an increase of 17% compared to the previous year.
After the close of the New York Stock Exchange, Microsoft shares gained almost 5%.
Read Also: Alphabet. Profit and business volume above expectations surprise the market (Portuguese version)
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