Microsoft’s Cloud Has Business Booming Again
Microsoft, more than any other traditional software company, has swiftly and profitably made the shift to delivering software as an internet service.
The technology giant reinforced how well is has made that transition on Thursday, when it reported strong gains in both profits and sales in its fiscal third quarter, led by the rapid growth of its cloud software business.
The company’s net income rose 35 percent from a year earlier, to $7.4 billion. Revenue rose 16 percent to $26.8 billion in the quarter, exceeding the Wall Street consensus forecast of nearly $25.8 billion.
Microsoft’s earnings per share increased 36 percent to 95 cents a share, well above the analysts’ average estimate of 85 cents a share, compiled by Thomson Reuters.
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Since Satya Nadella became chief executive in 2014, the cloud portion of Microsoft’s revenue has soared from 3 percent to more than 21 percent this year, accord..