Microsoft on Wednesday reported $38 billion in revenue for the three months ended in June — up 13% from the same period in the prior year and well above the $36.5 billion Wall Street analysts had expected.
The continued work-from-home trend boosted Microsoft's"intelligent cloud,""more personal computing" and"productivity and business processes" divisions. Investors may be concerned about slowing growth in its crucial Azure cloud business, which competes with market leader Amazon Web Services. Azure sales grew 47% during the second quarter, a slowdown from the 59% year-over-year growth it reported during the previous quarter.
However, as coronavirus cases continue to surge in the United States and many companies expect to keep relying on remote working, there is likely to be a greater incentive for businesses to update their digital capabilities, which should be positive for Microsoft in the longer term.