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Microsoft posted a solid fourth-quarter earnings with the support of its fast-expanding cloud computing business, increasing optimism that the once-failing company has found its new momentum.
The results were the clearest indication yet that the strategy implemented by CEO Satya Nadella is beginning to deliver results. He has also changed the company's focus away from a failing personal computer software business and revamping it as a provider of cloud computing and subscription-based software.
Revenue from its cloud unit climbed by around 11 percent to $7.43 billion in the fourth quarter which ended June 30. Analysts had expected the unit, which includes its flagship brand Azure platform and server products, to record a revenue of $7.32 billion. Meanwhile, revenue in the PC division fell 2 percent.
Underlining Azure's growth were notable increases to the company's long-term unearned revenue, which climbed by more than 61 percent year-on-year.
Looking to continue this pace, last week Microsoft launched Azure stack, a new service that enables customers to launch a local version of the firm's cloud tech.
Total net income increased by more than twofold to $6.51 billion or 83 cents per share during the quarter, up from the same period last year.
