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Microsoft Earnings: Revenue Exceeds Estimates

Microsoft shares rose after hours on Tuesday as the company's fiscal first-quarter revenue rose 22%, beating analysts’ estimates.

Microsoft  (MSFT) - Get Microsoft Corporation (MSFT) Report reported a strong performance from its cloud business Tuesday after the bell as the company beat analysts’ quarterly revenue estimates.

The Redmond, Wash., technology giant’s fiscal first-quarter 2022 revenue rose by 22% to $45.32 billion for the period ending Sept. 30, compared to the same period a year ago. Analysts surveyed by Refinitiv had forecasted $43.97 billion for the quarter.

The company generated $17.21 billion of net income with earnings per share of $2.27, beating analyst estimates of $2.07.

Shares of Microsoft jumped by 1.6% to $315.10 after hours. The stock had risen 0.6% in the regular session.

“Digital technology is a deflationary force in an inflationary economy. Businesses – small and large – can improve productivity and the affordability of their products and services by building tech intensity,” Microsoft CEO Satya Nadella said in a statement. “The Microsoft Cloud delivers the end-to-end platforms and tools organizations need to navigate this time of transition and change.”

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The company in a Tuesday statement credited its cloud business as a key to its strong quarterly performance.

“We delivered a strong start to the fiscal year with our Microsoft Cloud generating $20.7 billion in revenue for the quarter, up 36% year over year,” said Amy Hood, executive vice president and chief financial officer of Microsoft.

Revenue in Microsoft’s intelligent cloud increased 31% to $17 billion. In addition to strong cloud services results, the company noted that its revenue from productivity and business processes increased 22% to $15 billion.

Microsoft also reported that it returned $10.9 billion to shareholders in the form of share repurchases and dividends in the first quarter of fiscal year 2022, an increase of 14% compared to the first quarter of fiscal year 2021.

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