SAN FRANCISCO: Microsoft on Tuesday reported strong quarterly earnings, powered by demand for cloud computing.
The tech titan said it made a profit of $16.7 billion on revenue of $49.4 billion in the first three months of this year, eight percent and 18 percent, respectively, more than in the period a year earlier.
“Going forward, digital technology will be the key input that powers the world’s economic output,” said Microsoft chief executive Satya Nadella.
“Across the tech stack, we are expanding our opportunity and taking share as we help customers differentiate, build resilience, and do more with less.”
Microsoft shares rose more than four percent to $282.44 on the earnings figures, which came with an optimistic outlook for the current financial quarter.
Revenue in the company’s “intelligent cloud” unit that meshes datacenter-hosted software with artificial intelligence surged from the same period a year earlier, Microsoft reported.
“Continued customer commitment to our cloud platform and strong sales execution drove better-than-expected commercial bookings growth” along with cloud computing revenue, Microsoft chief financial officer Amy Hood said in the earnings release.
The pandemic accelerated a shift to relying on the Internet for work, education, shopping, socializing and entertainment, with Microsoft seemingly positioned to benefit from lifestyle changes that will remain even as people return to being out and about.
A business and productivity unit at Microsoft that includes its online suite of Office 365 software saw revenue grow with the help of a 34 percent increase in money taken in by career-focused online social network LinkedIn, the earnings report showed.
“Growth for LinkedIn was the most surprising,” CFRA equity research vice president John Freeman told AFP.
“LinkedIn continued to be Microsoft’s lower profile success story. That acquisition is looking better and better every year and every quarter.”
Microsoft bought LinkedIn for slightly more than $26 billion in 2016.
Money taken in for content and services at Microsoft’s Xbox video game division rose four percent in the recently ended quarter as the company works to beef up its cloud-based games subscription offering.
Microsoft is seeking regulatory approval for its $69 billion deal to buy video game powerhouse Activision Blizzard.
Merging with troubled Activision will make Microsoft the third-largest gaming company by revenue, behind Tencent and Sony, it said, a major shift in the booming world of games.
Activision, the California-based maker of “Candy Crush,” has been hit by employee protests, departures, and a state lawsuit alleging it enabled toxic workplace conditions and sexual harassment.
“Acquiring Activision will help jump start Microsoft’s broader gaming endeavors and ultimately its move into the metaverse with gaming the first monetization piece of the metaverse in our opinion,” Wedbush analysts said after the news broke.
Cloud computing helps power strong Microsoft quarter
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Cloud computing helps power strong Microsoft quarter
Closing Bell: Saudi main index closes in red at 10,847
RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Wednesday, losing 58.51 points, or 0.54 percent, to close at 10,847.93.
The total trading turnover of the benchmark index was SR3.78 billion ($1 billion), as 73 of the listed stocks advanced, while 187 retreated.
The MSCI Tadawul Index decreased, down 7.09 points or 0.48 percent, to close at 1,472.98.
The Kingdom’s parallel market Nomu lost 178.75 points, or 0.77 percent, to close at 22,916.83. This comes as 30 of the listed stocks advanced, while 37 retreated.
The best-performing stock was the Power and Water Utility Co. for Jubail and Yanbu, with its share price surging by 8.47 percent to SR31.24.
Other top performers included Saudi Paper Manufacturing Co., which saw its share price rise by 6.13 percent to SR53.70, and Jamjoom Pharmaceuticals Factory Co., which saw a 4.58 percent increase to SR137.
On the downside, the worst performer of the day was CHUBB Arabia Cooperative Insurance Co., whose share price fell by 5.14 percent to SR17.53.
Saudi Kayan Petrochemical Co. and Arabian Internet and Communications Services Co. also saw declines, with their shares dropping by 4.87 percent and 4.43 percent to SR4.88 and SR181.40, respectively.
On the announcement front, Saudi Kayan Petrochemical Co. announced its annual financial results for 2025, with sales dropping 3.06 percent year-on-year to SR8.45 billion. The company also recorded a net loss of SR893.86 million.
In a Tadawul statement, the company said the net loss and decline in annual sales were driven by a drop in average selling prices, despite higher sales volumes.
