Microsoft Beats Financial Expectations Despite Worries About Economy

Microsoft’s cloud computing business drove a surprisingly strong quarter despite pressure from the slowing U.S. economy, the company said on Tuesday.

Revenue in the first three months of the year was up 7 percent from a year earlier to $52.9 billion, and profit was up 9 percent to $18.3 billion. Both exceeded Wall Street expectations.

Microsoft’s cloud business — which includes Azure, its cloud computing product, and its Microsoft 365 platform — had $28.5 billion in revenue, up 22 percent from a year earlier.

Sales of Azure, a key result watched by investors, grew 27 percent, which was in line with investors’ expectations. Still, that was a drop from a 46 percent increase the year before. Overall, the segment that the company calls Intelligent Cloud was up 16 percent from a year earlier, which was better than had been expected.

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