Microsoft Cloud Earns Big With $17 Billion In Revenue For Q3

Microsoft reported that its Microsoft Cloud solution has been a big earner for the tech giant in the third quarter ending March 21, 2021, per a Tuesday (April 27) press release.

Amy Hood, executive vice president and chief financial officer of Microsoft, said Microsoft Cloud saw a $17.7 billion revenue earning, up 33 percent since last year.

Hood said Microsoft Cloud “continues to provide compelling value” for customers.

“Over a year into the pandemic, digital adoption curves aren’t slowing down. They’re accelerating, and it’s just the beginning,” said Microsoft CEO Satya Nadella. “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.”

The earnings report goes on to say that revenue from cloud products was $15.1 billion, with an increase of 23 percent. Server products and cloud services increased in revenue by 26 percent. That included Azure revenue growth of 50 percent, according to the release.

Microsoft's market cap was inching in on $2 trillion, the company said.

The company's overall revenue was $41.7 billion, an increase of 19 percent from last year, according to the release. And operating income sat at $17 billion, a boost of 31 percent. Net income for the company was $15.5 billion.

Microsoft made headlines recently when it sought to buy Discord, the communications platform, for a possible price tag of $10 billion. Microsoft Xbox users already have the ability to link their gaming accounts with Discord. But no final decisions have been made yet.

Earlier this month the tech giant bought Nuance Communications, which is now its second-most expensive acquisition following that of LinkedIn.

Nuance specializes in speech recognition and Microsoft could use it for developing technology to process patient and doctor consultations and incorporate the important information to a patient's electronic health record. That could cut down the time clinicians spend typing up those reports.