Microsoft reported third-quarter revenue of $82.9bn ($81.4bn expected), up 15% when ignoring currency moves. Growth was broad-based, including 39% in Azure.
Operating profit was $38.4bn ($36.8bn expected), up 16%, driven by strong revenue growth and margin expansion.
Free cash flow fell 22% to $15.8bn off the back of higher investment. Net cash including lease liabilities ended the quarter $21.3bn. Over the quarter, the company returned $10.2bn in cash to shareholders.
Revenue in the coming quarter is guided to land between $86.7-87.8bn, with Azure expected to grow at 39-40% when ignoring currency moves.
The shares were broadly flat in after-hours trading.
Our view
HL view to follow.
Microsoft key facts
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