Microsoft beats quarterly revenue estimates

July 25 (Reuters) – Microsoft (MSFT.O) on Tuesday beat Wall Street estimates for its fiscal fourth-quarter sales and profits, driven by growth in its cloud computing and office software businesses.

Revenue rose to $56.2 billion in the quarter ended June, compared with analysts’ consensus estimate of $55.5 billion, according to Refinitiv. Net income was $2.69 per share, compared with estimates of $2.55 per share.

Shares of the Redmond, Washington-based company dropped 2% in after-market trading.

Microsoft’s Intelligent Cloud unit, which houses the Azure cloud computing platform, grew to $24 billion, compared with analysts’ estimate of $23.8 billion, Refinitiv data showed.

Azure revenue rose 26%, higher than a 25.2% growth estimate from Visible Alpha.

The company does not break out the absolute revenue figure for Azure, the part of Microsoft’s business best situated to capitalize on booming interest in artificial intelligence.

Reporting by Yuvraj Malik in Bengaluru; Editing by Devika Syamnath

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