Microsoft Earnings keep growing while Azure’s rank shrinks

The most valuable public company in the U.S. is Microsoft. This American multinational company has recently posted the first quarter of its financial results of 2020. According to the report, the revenue generated accounts to $33.1 billion with a net income of $10.7 billion.

In comparison to the previous quarter, Microsoft has registered a 14% hike in its revenue and 21% growth in its net income. Hence, the company has garnered some solid earnings in its account.

However, there is still a reason of concern for the company! Why? Well, the company might be retaining huge profit, Azure (one of its segments) is slowing down in terms of generating profits.

Microsoft Azure

Microsoft Azure is a set of cloud-services for building, testing, deploying, and managing applications and services with the help of Microsoft-managed data centers.

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While in the fourth quarter of 2019, the cloud segment, including Azure, was the biggest segment by revenue it has drastically fallen in the first quarter of the results for 2020.

This is continuously for the second time that Azure’s growth rate has lowered. In the previous quarter it had dropped from 76% to 73% and then to 64% and this time it has rapidly decreased.

Azure had also been a reason for Microsoft’s stock initially struggling for gains in late trading.

Other statistics

Microsoft’s other segments such as personal-computer business has reported the revenue of $11.1 billion. It turned out to be better than what analysts had predicted it to be around $10.9 billion.

Its other segment, known as “Productivity and Business Solutions,” including office suite, LinkedIn, and others, has reported the revenue of $11.1 billion. LinkedIn has reported the growth of 25%.

Overall, Microsoft has given an optimistic full-year forecast. In fact, it has surpassed analysts’ expectations. The company expects more profitable return in the second quarter ranging between $35.15 billion to $35.95 billion.