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Summary
- Microsoft’s total revenues rose 19% to US$41.7 billion, while its operating income jumped 31% to US$17 billion in the quarter ended March 31, 2021.
- Microsoft stocks (NASDAQ:MSFT) were trading flat at US$261.97 at 4:00 pm ET on Tuesday.
- The company’s diluted earnings per share was US$2.03 (GAAP), which was an increase of 45%, and non-GAAP earnings per share was US$1.95 or up 39%.
Microsoft Corp (NASDAQ:MSFT) on Tuesday, April 27, posted strong third-quarter growth for the fiscal year 2021, with net income rising 44% to US$15.5 billion (GAAP). The stock was trading flat at US$261.97, or up 0.16% from the previous close, at 4:00 pm ET on Tuesday.
Its total revenues rose 19% to US$41.7 billion, while its operating income jumped 31% to US$17 billion in the quarter ended March 31, 2021, the company said in a release on Tuesday. Its non-GAAP net income was US$14.8 billion, or up 38%, compared to the year-ago period. The company’s diluted earnings per share was US$2.03 (GAAP), which was an increase of 45%, and non-GAAP earnings per share was US$1.95 or up 39%.
Announcing the company’s encouraging results, CEO Satya Nadella said that the earnings reflect strong growth in the online segment, mainly cloud computing. He exuded confidence that its cloud platforms would help sustain long-term growth, spanning the next decade. He also said that despite steady growth in digital technology over the past year, the trend isn’t slowing down.
The leadership emphasized that its cloud-based platforms continue to be customers’ top favorites that helped generate US$17.7 billion in revenues during the period, which was an increase of 33% year-over-year.
Highlights Of The Quarter
Revenues from office products, such as Office 365, and cloud services jumped 14% during the period. The company said that its Office 365 customers rose to 50.2 million. Income from LinkedIn increased by 25% while earnings from Intelligent Cloud were up 23%.
Azure, a cloud computing service, saw a 50% growth, which helped post robust earnings. Also, income from personal computing jumped 19% to US$13.0 billion.
The company said that its revenues from Windows OEM rose by 10%, while income from Xbox content and services surged 34%, and search advertising revenues rose 17%. The company also returned US$10.0 billion to its shareholders through various instruments during the period, it said.
Pic Credit: Pixabay.
Microsoft Acquires Nuance Inc. For US$19.7 Billion
Microsoft has recently announced to acquire Nuance Communications, Inc. (NASDAQ:NUAN) for US$19.7 billion. Nuance is a cloud and AI software company with extensive experience in the healthcare industry. The deal is expected to complement Microsoft Cloud’s transformative healthcare platform launched in 2020.
Announcing the decision on April 12, Mr. Nadella had said that Nuance’s expertise in AI for healthcare delivery would be a game-changer for the company. He said that AI is the single most important priority in terms of technology application today.
Nuance CEO Mark Benjamin will continue to hold the position after the merger with Microsoft, he said. Nuance's income from cloud services had jumped 37% in the fiscal year ended September 2020.
