Technology giant Microsoft Corporation (NASDAQ:MSFT) reported fiscal third-quarter earnings after market close Tuesday.
What Happened: Third-quarter revenue of $31.7 billion was up 19% year-over-year and beat Street estimates of $41 billion.
Microsoft reported operating income of $17 billion and net income of $14.8 billion, up 31% and 38% year-over-year, respectively.
Earnings per share of $1.95 beat estimates of $1.78 per share.
The company saw revenue of $13.6 billion for its productivity and business processes segment, up 15% year-over-year.
Office commercial products and cloud service revenue was up 14% year-over-year led by growth in Office 365 commercial revenue up 22% year-over-year. Microsoft 365 consumer subscriptions hit 50.2 million in the third quarter.
LinkedIn revenue was up 25% year-over-year. Dynamic products and cloud services revenue was up 26% year-over-year.
The company’s more personal computing business segment reported $13 billion in revenue, up 19% year-over-year. Xbox revenue was up 34% year-over-year in the segment. Search advertising revenue was up 17% year-over-year.
Related Link: Microsoft Hits New All-Time High As Q2 Cloud, Azure Business Overshadow Xbox Release
Growth In Cloud: Intelligent cloud segment revenue was $15.1 billion in the third quarter, up 23% year-over-year. Server products and cloud service revenue was up 26% year-over-year driven by Azure revenue up 50% year-over-year.
“We are building the cloud for the next decade, expanding our addressable market and innovating across every layer of the tech stack to help our customers be resilient and transform,” said CEO Satya Nadella.
Total Microsoft Cloud revenue hit $17.7 billion, up 33% year-over-year.
MSFT Price Action: Shares of Microsoft are down 3% to $252.88 after-hours Tuesday.