Microsoft's revenue growth accelerated to 19 percent in its fiscal third quarter to March, for total sales of USD 41.7 billion. Operating profit rose 31 percent to USD 17.0 billion, and the net profit jumped 44 percent to USD 15.5 billion. Microsoft said it benefited from the growing adoption of digital platforms, with demand expected to continue.
Adjusted EPS increased 39 percent to USD 1.95. This excludes a USD 620 million one-time gain from a court ruling on withholding tax claimed in India.
The company's operating cash flow grew 27 percent to USD 22.2 billion, and capex reached USD 6.0 billion. Free cash flow totaled USD 17.1 billion, up 24 percent year-on-year, and Microsoft returned USD 10 billion to shareholders in the form of dividends and share buybacks.
The Intelligent Cloud division remained the star performer, with revenue up 23 percent to USD 15.1 billion. Operating profit was 41 percent higher at USD 6.4 billion. Azure revenues jumped 50 percent, and server products grew by 3 percent. The enterprise mobility business reached over 174 million seats, up 30 percent from a year earlier.
In the Computing division, revenue rose 19 percent to USD 13.0 billion, and operating profit was up 27 percent to USD 4.6 billion. This was led by consumer demand for computers, with Windows Pro revenue down 2 percent and non-Pro up 44 percent. Gaming revenue also jumped 50 percent, thanks to the new Xbox models and a 34 percent increase in content sales. Surface revenue rose 12 percent, and search advertising increased 17 percent as the ad market strengthened.
Finally, in Productivity and Business Processes revenue was up 15 percent to USD 13.6 billion, and operating profit rose 26 percent to USD 6.0 billion. This was led by demand for Office products at businesses, with 365 commercial revenue up 22 percent. The company said Microsoft Teams has grown to 145 million daily active users. Office consumer rose a slower 5 percent, while LinkedIn revenues increased 25 percent, and Dynamics products grew by 26 percent.
