Microsoft's profits up 26% thanks to success of cloud platforms

Microsoft chief executive Satya Nadella
Microsoft chief executive Satya Nadella

Microsoft's earnings for the financial year ending 20 June are up 26% year on year to $21.2bn (£16.32bn) on the back of a strong final quarter.

Microsoft's net income for the three months ending 30 June was more than double that of the same period the year before, soaring 109% to $6.51bn.

"Innovation across our cloud platforms drove strong results this quarter," Satya Nadella, chief executive at Microsoft, said in a statement. "Customers are looking to Microsoft and our thriving partner ecosystem to accelerate their own digital transformations and to unlock new opportunity in this era of intelligent cloud and intelligent edge."

Revenue for Microsoft's Intelligent Cloud business for the quarter was up 11% to  $7.4bn driven by its enterprise cloud computing platform Azure which generated revenue growth of 97%. 

Personal computing revenue was down for the quarter by 2% to $8.8bn, due primarily to lower phone revenue which dropped by $361m. Sales for Microsoft Surface also dropped 2% . 

However, search advertising revenue on Microsoft's search engine Bing grew 10%. The tech giant said this was "driven by higher revenue per search and search volume".

Microsoft's income from gaming grew slightly by 3% with Xbox software and services compensating for lower hardware revenue. 

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