Microsoft’s (MSFT) transition into a software and cloud-based company is going off without a hitch as the company credited its cloud segment with another strong fiscal third-quarter performance.
Microsoft shares ended regular trade down 0.34% at $125.01, giving the company a market capitalization of $959 billion. The stock climbed as high as $130.82 in after-hours trade, briefly touching the $1 trillion-market-cap level before trimming gains. Microsoft needs to close with a share price of at least $130.50 for a market capitalization of $1 trillion.
The company reported a 14% increase in third-quarter revenue to $30.6 billion, yielding a profit of $8.8 billion, or $1.14 per share on an adjusted basis. Analysts polled by FactSet were execting the company to report revenue of $29.9 billion, yielding earnings of $1 per share.
“Leading organizations of every size in every industry trust the Microsoft cloud. We are accelerating our innovation across the cloud and edge so our customers can build the digital capability increasingly required to compete and grow,” said CEO Satya Nadella.
The company said that demand for its cloud products drove commercial cloud revenue to $9.6 billion, a 41% year over year increase. Personal computing revenue totaled $10.7 billion, an 8% increase year over year.
The company said that it will provide forward-looking guidance during its conference call.