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Microsoft post positive FY20 Q3 earnings in all businesses amid COVID-19’s “minimal impact”
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Published onApril 29, 2020
published onApril 29, 2020
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Microsoft just posted its FY20 Q3 earnings and despite a global pandemic, the company seems to be firing on all cylinders in almost every business sector the tech giant operates in.
According toMicrosoft’s official earnings press release, the company generated $35.0 billion in revenue for the quarter, posting a 15% increase year over year for the same period.
Microsoft’s increased revenue haul is reflected in the company’s $10.8 billion net income return that also tops last year’s return for the same three months earnings, by 22%.
While the COVID-19 pandemic only accounts for a small time in for Microsoft’s total quarterly revenue, executive vice president and CIO Amy Hood does credit the extraneous situations brought on by the global virus, throughout its filings in various business sectors.
“In this dynamic environment, our sales teams and partners executed a solid third quarter, with Commercial Cloud revenue-generating $13.3 billion, up 39% year over year. We remain committed to balancing operational discipline with continued investments in key strategic areas to drive future growth.”
Office Commercial Products
Revenue in Productivity and Business Processes was $11.7 billion and increased 15% (up 16% in constant currency), with the following business highlights:
Intelligent Cloud
Revenue in Intelligent Cloud was $12.3 billion and increased 27% (up 29% in constant currency), with the following business highlights:
More Personal Computing
Revenue in More Personal Computing was $11.0 billion and increased 3% (up 4% in constant currency), with the following business highlights:
In summation, Microsoft was able to return roughly $9.9 billion to shareholders highlighting a 33% increase from 2019 despite the early signs of a potential global recession emerging at the tail end of its earnings quarter. The company qualifies COVID-19 related disruptions as having “minimal impact” on its bottom line.
Looking beyond the numbers, Microsoft’s Q3 earnings represent a company running lean with significant cloud gains and minimal expenditures, however, it should be noted that its relatively flat Surface hardware numbers and lowered Windows licensing gains highlight a trend that may eventually begin to drag on the company’s next reported earnings.
Lowered LinkedIn traffic, minimal Windows licenses and, supply chain issues for partnered OEM PC efforts could also be an issue for Microsoft as world economies shift in the wake of the COVID-19 pandemic.
Kareem Anderson
Networking & Security Specialist
Kareem is a journalist from the bay area, now living in Florida. His passion for technology and content creation drives are unmatched, driving him to create well-researched articles and incredible YouTube videos.
He is always on the lookout for everything new about Microsoft, focusing on making easy-to-understand content and breaking down complex topics related to networking, Azure, cloud computing, and security.
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Kareem Anderson
Networking & Security Specialist
He is a journalist from the bay area, now living in Florida. He breaks down complex topics related to networking, Azure, cloud computing, and security
