Microsoft earnings beat as cloud growth comes in better than feared

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Microsoft's revenue from Azure and other cloud services topped analysts' estimates.

Revenue growth from Azure slowed to 27% from 31% in the prior quarter.Satya Nadella, chairman and chief executive officer of Microsoft Corp., speaks during the virtual Meta Connect event in New York on Oct. 11, 2022.shares rose 5% in extended trading on Tuesday after the software maker issued fiscal third-quarter results that exceeded analysts' predictions.$2.45 per share, vs. $2.23 per share as expected by analysts, according to Refinitiv.

Revenue from Azure and other cloud services grew by 27%, compared with 31% in the prior quarter. The average estimate from analysts polled by CNBC had expected 26.5% growth, while those consulted by StreetAccount were looking for 27.2%. The Productivity and Business Process segment containing Dynamics, LinkedIn and Office, posted $17.52 billion in revenue, which was up about 11% and above the StreetAccount consensus of $17.05 billion.

The More Personal Computing segment, featuring Bing, Windows, Surface and Xbox, delivered $13.26 billion in revenue, down 9% but more than the $12.25 billion StreetAccount consensus.that PC shipments declined 30% in the quarter.

 

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