Microsoft saw a sharp rise in profits this week as the quarter comes to a close, media reports said. It is reported that the technology giant saw a 22 percent rise in profits in the second quarter to $10.8 billion compared to the same period last year.
The impact of the Covid-19 pandemic is not fully reflected for the fiscal third quarter.
Patrick Moorhead of Moor Insights & Strategy, told the media, “The company is insulated right now more than others from big impacts from COVID-19,” Moorhead said, noting that it does not rely on “discretionary” consumer spending or advertising. In addition, Microsoft offers products and services that are helping organizations get through the crisis whether they are remote working or transforming businesses like retail, which is driving demand. These are not discretionary business spends but required spend to weather the pandemic.”
It appears that the company has observed tremendous growth in productivity and business processes in recent months. Revenue generated from its productivity and business processes reached $11.7 billion, with an increase of 15 percent.
In addition, revenue in More Personal Computing was $11 billion and rose 3 percent. The company’s surface revenue rose 1 percent, media reports said. Amy Hood, executive vice president and chief financial officer of Microsoft, said in a statement, In this dynamic environment, our sales teams and partners executed a solid third quarter, with Commercial Cloud revenue generating $13.3 billion, up 39 percent year over year.”
Overall, the company has observed two years’ worth of digital transformation take place in two months.