Microsoft posted record-breaking net income and revenues for fiscal 2021 that ended June 30, which far surpassed market consensus. The company’s net profit rose 38% to $ 61.27 billion, adjusted profit increased 37% to $ 60.65 billion. Revenue increased 18% to $ 168.1 billion. In the fourth fiscal quarter, net income jumped 47% – to $ 16.458 billion, or $ 2.17 per share, compared with $ 11.202 billion, or $ 1.46 per share received in the comparable period of the previous year. Quarterly revenue increased by 21% and reached $ 46.152 billion against $ 38.033 billion a year earlier. The market expected the company’s quarterly earnings of $ 1.92 per share on revenue of $ 44.22 billion.
The revenues of each division of the company exceeded market expectations. Thus, the revenue of the cloud division of Intelligent Cloud, which includes the cloud service Azure and the business to produce software for servers, increased by 30% in the last quarter and reached $ 17.375 billion compared to market expectations of $ 16.39 billion.
Division Productivity and Business Processes, which, in particular, develops the suite of Office applications, increased revenue by 25% – to $ 14.69 billion, while analysts predicted the figure at $ 13.93 billion. Business revenue More Personal Computing (Windows, Xbox game consoles and Surface devices) climbed 9% to $ 14.09 billion on a market consensus of $ 13.78 billion.
Microsoft has a unique business model and a highly sought-after product line. We consider Microsoft to be one of the best high-tech companies that can significantly benefit from the growing demand for cloud services and cybersecurity services. Technological excellence should help Microsoft become the leading hybrid cloud company and capitalize on the digitalization of corporate infrastructure as more enterprises seek to modernize their IT assets and move to cloud services. We believe that Azure cloud services will remain the main driver of business growth in the long term. Microsoft for the fourth financial quarter returned $ 10.4 billion to shareholders in the form of dividend payments and buybacks of its shares, which is 16% more than the amount spent for these purposes in the same period last year. We were impressed with Microsoft’s results, so we revised our valuation of the company from $ 310 to $ 320 per share.
Microsoft is one of the world’s leading technology companies. Since 1975, it has been developing, manufacturing, licensing, selling and providing software support for a variety of computing hardware, mobile devices and game consoles. Among the most famous products of the company, it is worth noting the Windows operating system and the Office software suite, as well as Azure cloud services. The only competitor to the Xbox game console is Sony PlayStation. The company also manufactures mobile phones, tablets and digital music entertainment devices. Microsoft owns LinkedIn, a social network that helps millions of users to establish business contacts. Microsoft customers include both individuals and corporate customers, as well as government agencies. Almost half of the corporation’s revenue is generated within the United States.