Strength in Microsoft's cloud business helped offset the impact of COVID-19 on computer manufacturing, as the company topped earnings and revenue expectations for the quarter that ended March 31. That's despite a February warning from the company that PC sales would not meet prior estimates.
Why it matters: The tech sector has taken on added importance and value as many other areas of the economy have been shut down or severely impacted by the coronavirus pandemic.
By the numbers:
- Revenue for the quarter was $35 billion, up 15% from a year earlier and ahead of consensus predictions of around $33.6 billion.
- Net income was $10.8 billion, up 22%.
- Per-share earnings were $1.40, compared to analysts' consensus expectations of $1.26, per Yahoo Finance.
What they're saying: "We’ve seen two years’ worth of digital transformation in two months," CEO Satya Nadella said in a statement. "From remote teamwork and learning, to sales and customer service, to critical cloud infrastructure and security — we are working alongside customers every day to help them adapt and stay open for business in a world of remote everything."
However, Microsoft cautioned that "the effects of COVID-19 may not be fully reflected in the financial results until future periods."
The company said it would provide more financial guidance on a conference call with analysts that begins at 2:30 p.m. PT.