Microsoft Q3 2020 earnings and revenue outperform with 'minimal net impact' of COVID-19

Microsoft reported Q3 2020 revenue of $35.0 billion with net income of $10.8 billion and earnings per share of $1.40, beating estimates.

COVID-19 had a "minimal net impact on the total company revenue," according to a company announcement.

Azure revenue grew 59% within an overall 27% growth in Intelligent Cloud segment revenue to $12.3 billiion.

Revenue in Productivity and Business Processes rose 15% to $11.7 billion. That included 17% growth in Dynamics product and cloud services revenue driven by Dynamics 365 revenue growth of 47%. Office 365 Commercial revenue grew 25%.

In Q3 2019, Revenue in Productivity and Business Processes was $10.2 billion with Dynamics products and cloud services revenue up 13%, driven by Dynamics 365 revenue growth of 43%. And in that quarter, Azure revenue grew 73%. In Q3 2018 Azure revenue had grown 93%.  

In Q2 2020, Azure revenue grew 62% amid an overall revenue increase in the Intelligent Cloud segment of 27% to $11.9 billion.

“We’ve seen two years’ worth of digital transformation in two months. From remote teamwork and learning, to sales and customer service, to critical cloud infrastructure and security – we are working alongside customers every day to help them adapt and stay open for business in a world of remote everything,” stated Satya Nadella, chief executive officer of Microsoft. “Our durable business model, diversified portfolio, and differentiated technology stack position us well for what’s ahead.”