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(Bloomberg) — Microsoft Corp.’s third-quarter gross sales rose 19%, lifted by strong demand for cloud-computing companies and the strongest quarterly leap in private laptop shipments in additional than 20 years. Shares slipped in prolonged buying and selling as income missed the loftiest projections.Gross sales within the interval ended March 31 rose to $41.7 billion, the Redmond, Washington-based software program maker stated Tuesday in a press release. That in contrast with the $41.1 billion common estimate of analysts polled by Bloomberg. Nonetheless, analyst projections ranged as excessive as $41.9 billion, with some saying current good points within the inventory had inflated expectations past the consensus numbers.Microsoft’s Azure, which sells internet-based computing companies to companies, noticed gross sales climb by 50%, matching the achieve posted within the earlier quarter. Whereas Azure has been rising steadily, it faces steep competitors for giant offers from Amazon.com Inc., the dominant cloud service, and Google. A world semiconductor scarcity has additionally constrained gross sales of Xbox consoles following the discharge of a brand new machine late final yr.“The Road hoped for a stronger top-line beat,” stated Dan Ives, an analyst at Wedbush. “Though Azure got here in forward of Road expectations and that continues to be key for the bulls.”Web revenue within the current interval was $15.5 billion, or $2.03 a share, Microsoft stated. Analysts had predicted $1.78.Microsoft shares dropped about 3% in prolonged buying and selling following the report. The inventory has elevated greater than 50% previously yr, and the corporate’s market worth is approaching $2 trillion as traders preserve their enthusiasm about Chief Government Officer Satya Nadella’s reinvention of the software program maker, centered on progress in cloud-based software program and companies.“Microsoft inventory has made a giant run and is buying and selling at elevated multiples based mostly on all key valuation metrics,” stated Daniel Morgan, senior portfolio supervisor at Synovus Belief Co.Industrial cloud gross sales rose 33% to $17.7 billion, Microsoft stated. Gross margin in that phase widened 3 proportion factors to 70%, principally as a consequence of an accounting change, the corporate stated in a slide posted on its web site. Microsoft stated income within the Clever Cloud unit rose to $15.1 billion.The pandemic triggered some firms to hurry up strikes to the cloud and accelerated upgrades to internet-based collaboration software program, like Microsoft’s Workplace suite and Groups. Gross sales within the Productiveness and Enterprise Processes division have been $13.6 billion, a leap of 15%.Microsoft noticed elevated buyer allegiance to its cloud companies with longer and extra in depth Azure deployments and Workplace cloud prospects including seat licenses for extra customers, Chief Monetary Officer Amy Hood stated in an interview.“We’re including seats, we’re promoting further merchandise and also you’re seeing extra workloads be dedicated to Azure over time,” she stated. “It’s a superb signal of dedication to the general platform of the Microsoft cloud.”Income within the Extra Private Computing unit rose 19% to $13 billion. PC gross sales, as soon as a drag on Microsoft’s outcomes, have picked up as consumers improve gear for college and work, particularly compared to the year-earlier interval, when the pandemic harm manufacturing and buying. Total PC shipments rose 32% within the quarter, in accordance with Gartner Inc.Nonetheless, a worldwide chip scarcity is inflicting constraints of PC availability, Hood stated, and is limiting Microsoft’s capacity to construct sufficient of the brand new Xbox console fashions launched in November. Whereas Xbox {hardware} gross sales grew 232% within the current interval, stock of these machines stays tight, and that may proceed into the June quarter, Hood stated.(Provides division outcomes, CFO’s feedback beginning in eighth paragraph.)For extra articles like this, please go to us at bloomberg.comSubscribe now to remain forward with probably the most trusted enterprise information supply.©2021 Bloomberg L.P.