Microsoft Shares Up: ‘COVID-19 Had Minimal Impact On Revenue’
Microsoft has stated that “COVID-19 had minimal net impact on the total company revenue”, with revenue rising by 15% in Q3 FY 2020 to $35 billion. Following its earnings report, Microsoft’s share price is up 4.49%, as of 11.30am 29th April.
This was led by Microsoft’s cloud products, which have understandably seen considerable growth as more people are working and learning remotely. Gaming also benefitted from stay-at-home guidelines across the globe.
“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,” Amy Hood, the Executive Vice President and CFO of Microsoft, said.
Microsoft was able to return $9.9 billion to its shareholders in Q3 FY 2020, up 33% year-on-year.
However, like all companies Microsoft’s investor statement was mixed, given the uncertainty surrounding the COVID-19 crisis.
While there was increased demand for Microsoft’s personal computing, Windows OEM and Surface, this was partially offset by supply chain constraints in China, though these issues began to ease in late March.
“We’ve seen two years’ worth of digital transformation in two months. 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,” said Satya Nadella, CEO of Microsoft. “Our durable business model, diversified portfolio, and differentiated technology stack position us well for what’s ahead.”