PC and cloud demand mean Microsoft sees 'minimal' coronavirus impact

Microsoft October 2 event
(Image credit: StockStudio / Shutterstock)

Microsoft has announced the results for its third fiscal quarter of 2020 revealing that strong PC and cloud demand helped the software giant's revenue during the coronavirus outbreak.

The company reported revenue of $35bn and net income of $10.8bn with revenue up 15 percent while net income jumped by 22 percent compared to the same period last year.

Surprisingly, the coronavirus had minimal net impact on Microsoft's revenue.

In a press release, the company's CEO Satya Nadella credited this to the recent surge in remote work and distance learning, saying:

“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. Our durable business model, diversified portfolio, and differentiated technology stack position us well for what’s ahead.”

PC and cloud demand

With more employees working from home and students taking online classes recently, there has been an increase in demand for Windows PCs. According to Microsoft, Windows OEM Pro revenue grew by five percent while non-pro revenue declined by 10 percent. However, some of this demand increase was offset by supply chain constraints in China that improved late in the quarter.

Microsoft's Productivity and Business Processes unit, which includes Office 365, Dynamics 365 and LinkedIn, saw revenue of $11.7bn and increased by 15 percent during the quarter. Office Commercial products and cloud services revenue increased by 13 percent and Office 365 consumer subscriptions managed to hit 39.6m.

Executive vice president and CFO of Microsoft, Amy Hood praised the work of the company's sales teams and partners during the quarter, saying:

“In this dynamic environment, our sales teams and partners executed a solid third quarter, with Commercial Cloud revenue generating $13.3 billion, up 39% year over year. We remain committed to balancing operational discipline with continued investments in key strategic areas to drive future growth.”

Via The Verge

Anthony Spadafora

After working with the TechRadar Pro team for the last several years, Anthony is now the security and networking editor at Tom’s Guide where he covers everything from data breaches and ransomware gangs to the best way to cover your whole home or business with Wi-Fi. When not writing, you can find him tinkering with PCs and game consoles, managing cables and upgrading his smart home.