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Microsoft Tops Estimates; Azure Growth Trend Spooks Investors

  • Cloud-computing unit closely watched as main revenue driver
  • Azure faces steep competition from Amazon, Google cloud units
Bloomberg business news
Wedbush's Ives Calls Microsoft's Earnings 'Stellar'
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Microsoft Corp. reported sales and profit that exceeded analysts’ estimates for a 10th straight quarter, sending shares higher after some investors were initially spooked by signs of slowing growth in the software giant’s Azure cloud-computing business.

Sales in the fourth quarter, which ended June 30, climbed 21% to $46.2 billion, the Redmond, Washington-based company said Tuesday in a statement. That compared with the $44.3 billion average estimate of analysts polled by Bloomberg. Net income rose to $16.5 billion, or $2.17 a share, while analysts had predicted $1.92.