Microsoft beats second-quarter income estimates on cloud development

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FILE PHOTO: Microsoft CEO Satya Nadella addresses a information convention in Berlin, Germany February 27, 2019. REUTERS/Fabrizio Bensch

(Reuters) – Microsoft Corp (MSFT.O) beat analysts’ estimates for quarterly income on Wednesday, pushed by energy in its cloud computing platform Azure, sending its shares up 2%.

Income within the firm’s clever cloud phase, which incorporates Azure, rose 27% to $11.9 billion within the quarter, beating analysts’ common estimate of $11.40 billion.

Microsoft faces intense competitors from Amazon.com Inc’s (AMZN.O) AWS for share within the cloud infrastructure market, as extra firms look to shift their computing work to information facilities managed by cloud suppliers.

Amazon Net Providers dominates the market with 32.6% share adopted by Azure that holds about 17% share, based on information from analysis agency Canalys.

Azure, which has been reporting slowing development since final 12 months, posted quarter-over-quarter development of 62% within the second quarter versus 59% within the first quarter.

Income from its private computing division, its largest by gross sales, rose 2% to $13.2 billion, beating analysts’ expectations of $12.84 billion. The unit consists of Home windows software program, Xbox gaming consoles, on-line search promoting and Floor private computer systems. The tech large’s complete income rose 13.7% to $36.91 billion within the quarter ended Dec. 31, beating analysts’ estimates of $35.68 billion, based on IBES information from Refinitiv.

Internet revenue rose to $11.65 billion, or $1.51 per share, from $8.42 billion, or $1.08 per share, a 12 months earlier. (bit.ly/313nsSh)

Analysts on common had anticipated a revenue of $1.32 per share.

Reporting by Ayanti Bera in Bengaluru and Stephen Nellis in San Francisco; Modifying by Maju Samuel

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