Microsoft’s fourth-quarter earnings were higher than expected in 2021. Intelligent Cloud business revenue — which includes Azure — shot up. Yet, the stock market reacted with disappointment.
During the presentation of the figures, Microsoft CEO Satya Nadella indicates that the org is doing well. Cloud services grew very strongly during the pandemic, a trend that Nadella expect to extend throughout 2022.
In total, the tech giant managed to book revenue of over 45.7 billion euros for the fourth quarter of 2021; an increase of 20 percent compared to the same period in 2020. Microsoft’s profit in the fourth quarter totalled 16.6 billion euros, increasing 21 percent compared to the same period in 2020.
Intelligent Cloud business biggest earner
Microsoft’s Intelligent Cloud business contributed significantly to the figures. The division, which includes all server and cloud services, recorded sales of 16.2 billion euros. Server and cloud services saw a 29 percent increase in revenue, while other cloud services posted a 46 percent increase in revenue.
The More Personal Computing segment, which includes Windows OS and Xbox services, recorded sales of around 15.5 billion euros. The Productivity and Business Processes segment, which includes Office and LinkedIn, posted sales of 14 billion euros.
Dissapointing effect on stock market
Despite the promising figures, the stock market reacted with disappointment. Shares in tech companies are less popular than during the heyday of the pandemic. Microsoft shares fell shortly after the figures were announced, but eventually managed to rise three percent.
Investors expect that Microsoft’s results will continue to increase in the coming years. The recent acquisition of Activision Blizzard sets high expectations.