by Stephen Nellis and Akanksha Rana
(Reuters) – Microsoft on Tuesday reported revenue in line with Wall Street expectations and disappointing for investors, who were hoping for a more substantial rise in revenue given the company’s high valuation.
The Redmond group saw its share jump in a year and reached a market capitalization close to 2,000 billion dollars (1,653 billion euros) thanks to its successful switch to the rapidly expanding cloud computing market. ) with in particular its Azure division.
Microsoft reported revenue of $ 41.7 billion for the third quarter of its fiscal year ended March and earnings per share of $ 1.95, while analysts expected an average of $ 41.03 billion. and $ 1.78, according to Refinitiv data.
Revenue from what Microsoft calls its “commercial cloud,” which includes Azure as well as cloud versions of its Office software, climbed 33% to $ 17.7 billion.
The group also benefited from the increased use of its Teams video conferencing and instant messaging software during a pandemic, with more than 145 million active users.
The growth in sales of computers for teleworking from home also helped to increase sales of its Windows operating system.
The Azure division, which competes fiercely against similar units from rivals Amazon (AWS, Amazon Web Services) and Google, saw growth of 46% excluding currency effects in the past quarter (up from + 48% in the previous quarter) , while analysts were expecting an average of 46.3%, according to data from Visible Alpha.
The stock, which has risen 50% over the past year as companies accelerated their transition to “cloud computing,” fell 3.2% after trade closed.
The drop is a “knee-jerk reaction from Wall Street, which was hoping for an even better-than-expected revenue performance,” said Dan Ives of Wedbush Securities.
(French version Jean-Stéphane Brosse, edited by Jean Terzian)