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Riding once again on its Azure Cloud business, Microsoft has reported strong growth with $41.7 billion in sales (up 19 percent year-over-year) and $15.5 billion in net income for the quarter ended March 31.

Microsoft’s biggest growth engine was Azure Cloud division which saw $15.1 billion in revenue, a 23 per cent year-over-year increase.

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“Over a year into the pandemic, digital adoption curves aren’t slowing down. They’re accelerating, and it’s just the beginning,” said Microsoft CEO Satya Nadella.

“We are building the cloud for the next decade, expanding our addressable market and innovating across every layer of the tech stack to help our customers be resilient and transform,” Nadella said in a statement late on Tuesday.

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Microsoft said that its server products and cloud services revenue increased 26 per cent, driven by Azure revenue growth of 50 per cent.

“The Microsoft Cloud, with its end-to-end solutions, continues to provide compelling value to our customers generating $17.7 billion in commercial cloud revenue, up 33 percent year over year,” said Amy Hood, executive vice president and CFO of Microsoft.

Apart from Azure growth, Microsoft reported $13 billion revenue in its ‘More Personal Computing’ vertical that increased 19 per cent (YoY). Xbox content and services revenue increased 34 per cent while Surface revenue increased 12 per cent.

The company reported $13.6 billion revenue in its productivity and business vertical that increased 15 per cent (YoY).

Office Commercial products and cloud services revenue increased 14 per cent driven by Office 365 Commercial revenue growth of 22 per cent. Microsoft 365 Consumer subscribers increased to 50.2 million.

While LinkedIn revenue increased 25 per cent, Dynamics products and cloud services revenue increased 26 per cent, driven by Dynamics 365 revenue growth of 45 per cent, said Microsoft.

Revenue in “More Personal Computing” was $13 billion and increased 19 per cent.

Xbox content and services revenue increased 34 per cent while Surface revenue increased 12 per cent.

“At Microsoft, our focus remains on ensuring the safety of our employees, striving to protect the health and well-being of the communities in which we operate, and providing technology and resources to our customers and partners to help them do their best work while remote,” the company said.

The company’s stock was down more than 3 per cent after the result.

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