Microsoft Surpasses Q3 Expectations as Cloud Revenue Reaches $38.4 Billion
Microsoft beats Wall Street estimates for its third quarter with $30.6 billion in revenue driven by strong commercial cloud growth. Azure grows 73 percent as the tech giant's intelligent cloud segment brings in $9.7 billion.
Microsoft reports $30.6 billion in revenue for its third quarter of 2019, easily beating Wall Street expectations of $29.84 billion. The tech giant also posts earnings of $1.14 per share, surpassing the anticipated $1 per share. This 14 percent year-over-year revenue increase highlights the company's continued financial strength.
The company's commercial cloud business reaches an annual run rate of $38.4 billion, narrowly missing analyst predictions of $38.5 billion. Azure drives this success with 73 percent revenue growth, while the broader intelligent cloud segment generates $9.7 billion in revenue, representing a 22 percent increase from the previous year.
Beyond cloud services, Microsoft sees solid performance across its other divisions. Productivity applications bring in $10.2 billion, with LinkedIn revenue jumping 27 percent and session counts rising 24 percent. Additionally, Surface device revenue increases by 21 percent thanks to recent hardware releases.