Microsoft shares rise after the tech giant posts 15% growth

Today Microsoft reported its third-quarter, fiscal 2020 quarter earnings, the period of time corresponding to Q1 2020 on the regular calendar. The technology giant generated $35 billion in revenue, up 15% from the year-ago period. That top line led to $13 billion in operating income (+25% YoY), and $10.8 billion in net income (+22% YoY). […]

Today Microsoft reported its third-quarter, fiscal 2020 quarter earnings, the period of time corresponding to Q1 2020 on the regular calendar.

The technology giant generated $35 billion in revenue, up 15% from the year-ago period. That top line led to $13 billion in operating income (+25% YoY), and $10.8 billion in net income (+22% YoY). Microsoft saw $1.40 in earnings per share in the quarter.

Investors had expected the company to report $1.26 in per-share profit off of revenue of $33.66 billion, according to Yahoo Finance. Right after reporting its results, Microsoft shares were up around 1.5%. The firm rallied 4.5% during regular trading hours on the back of a strong day of trading for technology equities.

Other headlines from the company’s earnings report include Azure (its AWS competitor) growing 59% from its year-ago result, 25% growth in Office 365 commercial incomes, LinkedIn top line growing 21% from the year-ago period, and roughly flat results from its Xbox, search, and Surface businesses.

However, calendar Q1 (Q3 F2020 for Microsoft) only included a portion of the world’s COVID-19 response. The results reflected that, with the company noting that “COVID-19 had minimal net impact” on revenue in the quarter, boosting cloud usage, lowering some advertising revenue from LinkedIn, raising gaming engagement, and slowing search advertising top line. The balance of that appears to be largely a wash.

The company will talk more about the future on its earnings call, but the firm did warn in its own report that “the effects of COVID-19 may not be fully reflected in the financial results until future periods.”

More to come.

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