Microsoft reports $35.0 billion in Q3 2020 revenue: Azure up 59%, Surface up 1%, and LinkedIn up 21%

Microsoft today reported earnings for its third fiscal quarter of 2020, including revenue of $35.0 billion, net income of $10.8 billion, and earnings per share of $1.40 (compared to revenue of $30.6 billion, net income of $8.8 billion, and earnings per share of $1.14 in Q3 2019). All three of the company’s operating groups saw year-over-year growth.

Analysts had expected Microsoft to earn $33.7 billion in revenue and report earnings per share of $1.26. The company thus easily beat expectations. Eyes are on Microsoft during the coronavirus pandemic, given its prominent role in the software and cloud industries. And so far, so good: “COVID-19 had minimal net impact on the total company revenue,” Microsoft said. Unlike tech giants Google and Facebook, Microsoft doesn’t generate the majority of its revenue from advertising and thus might not feel the impact of the coronavirus crisis as deeply. The company’s stock was up 4% in regular trading and up another 3% in after-hours trading. Microsoft returned $9.9 billion to shareholders in the form of share repurchases and dividends during the quarter.