Microsoft forecast double-digit revenue for its fourth fiscal quarter after a stellar quarterly report. According to Microsoft, the expected growth is driven by demand for cloud computing services.
For the fourth quarter, Microsoft forecast Intelligent Cloud revenue of $21.1 billion to $21.35 billion, driven by strong growth in its Azure platform, which analysts had expected to generate revenue of $20.93 billion.
“If there is any headwind, where you have more value for less price means you win. In our case, when it comes to our commercial cloud offerings, we have significant advantages on that across the stack,” said Microsoft CEO Satya Nadella.
Despite the glowing forecast for the fourth quarter, Microsoft Chief Financial Officer Amy Hood warned that the company’s business could be affected if China’s pandemic continues into May.
Microsoft is currently benefiting from the hybrid working model that has helped drive up revenues for Windows products.
Microsoft reported third-quarter revenue of $49.36 billion, surpassing analyst estimates of $49.05 billion. The company’s net income rose to $16.73 billion, or $2.22 per share, in the third quarter from $15.46 billion, or $2.03 per share, a year earlier.
The sources for this piece include an article in Reuters.