Microsoft’s cloud business continues to shine as earnings again top estimates

With its cloud business continuing to grow, Microsoft on Thursday turned in financial results ahead of what many analysts were expecting.

The company reported $4.7 billion in net income, or 60 cents per share on $20.5 billion in revenue. Excluding certain items, the company said it had earnings of $6 billion, or 76 cents per share, on adjusted revenue of $22.3 billion

Wall Street was expecting around $21.7 billion in adjusted revenue and earnings of 68 cents per share, according to various consensus estimates.

While the cloud and server businesses remained healthy, Windows sales were relatively flat for the quarter, while phone sales continued their decline, with revenue down 72 percent from a year ago.

The company said it expects to close two big deals in the current quarter: It’s acquisition of LinkedIn and the divestiture of its entry-level mobile phone business.

Microsoft handily beat earnings and sales forecasts last quarter too amid continued strength in its cloud business.

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