Microsoft lives up to expectations with third quarter results

Results exceed analyst expectations by $1bn

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Microsoft achieved higher than expected revenue and profit in the past quarter. Microsoft Cloud revenue alone rose 22% to $38.9 billion.

Group revenue rose 16% to $65.6 billion, about a billion dollars more than analysts’ expectations of $64.6 billion. A year earlier, it was $56.5 billion.

Microsoft’s net profit rose 11% to $24.7 billion, or $3.30 per share.

Investors’ focus is on developments in the Intelligent Cloud division where revenue rose 20% to $24.1 billion.

At Productivity & Business Processes, the company increased 12% to $28.3 billion. Xbox revenue increased 61% due to the acquisition of Activision. Furthermore, Microsoft sold 18% more ads.

This week, Microsoft accused Google of directing anti-lobbying campaigns “from the shadows”. In a blog, Rima Alaily, deputy general counsel, lashed out sharply at Google.

It particularly bothers Microsoft that Google has joined the Open Cloud Coalition, an association of about a dozen cloud providers from the EU and the United Kingdom. Alaily calls the association a “pseudo-organisation” created to “conspire against Microsoft”.

Google allegedly went to great lengths to cover up its involvement, funding and control.

In September, Google in turn complained to the EU about Microsoft’s “anti-competitive” cloud practices.

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