Microsoft Corp. finished yet another record-breaking year with more than $60 billion in profit and $165 billion in sales, showing why it has become only the second $2 trillion company in U.S. stock market history.

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Microsoft MSFT, on Tuesday, reported fiscal fourth-quarter earnings of $16.46 billion, or $2.17 a share, up from $1.46 a share a year ago. The maker of Windows and other software products divulged revenue of $46.15 billion, a quarterly record and up from $38.03 billion in the year-ago quarter.

Analysts had expected earnings of $1.92 a share on sales of $44.22 billion, according to FactSet.

Microsoft totalled $61.27 billion in profit on sales of $168.09 billion, both easily exceeding the records established in its previous fiscal year. The gains exceeded expectations at the beginning of the year, as Microsoft’s cloud-computing and -software offerings found needy customers in employers scrambling to move to a work-from-home setup due to the COVID-19 pandemic and expected to continue to shift to online options.

“It is abundantly clear that Microsoft is well-positioned to continue to benefit from a number of secular trends powering IT spending, including the greater focus on digital transformation and the accelerating shift to the cloud,” Evercore ISI software analysts wrote earlier this month in a preview of the sector.

Microsoft’s segments produced better growth than analysts expected in the final three months of the company’s fiscal year, which included the launch of a new Xbox and a new version of Windows. “Productivity and business processes,” which comprises most of Microsoft’s cloud-software offerings, grew to $14.69 billion in sales from $11.75 billion a year ago, topping analysts’ average expectations of $13.93 billion. “More Personal Computing,” the traditional PC business, grew to $14.09 billion from $12.91 billion, beating the average analyst forecast of $13.78 billion.

The biggest segment for Microsoft was “Intelligent Cloud,” which wraps in its Azure cloud-computing offering with sales of servers and other equipment needed for a hybrid-cloud setup. Microsoft reported record quarterly sales of $17.38 billion in that segment, up from $13.37 billion a year ago and beating the average analyst estimate of $16.39 billion.

Izaan Zubair
Izaan's inquisitive in technology drove him to launch his website Tech Lapse. He usually writes pieces on emerging technology, anime, programming and alike niches. He can be reached at [email protected]

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