Microsoft fell more than 2% in premarket trading

Microsoft fell more than 2% in premarket trading,and its operating profit margin fell in the third quarter.

Microsoft Results Beat in Q1 as Cloud Growth Gathers Pace

Microsoft reported Tuesday first-quarter results that beat consensus estimates, led by strong growth in its cloud division as businesses continue to move workloads to the cloud.

The company announced earnings per share of $1.95 on revenue of $41.71B. Analysts polled by Investing.com anticipated EPS of $1.78 on revenue of $41.04B.

Revenue in productivity and business processes was up 15% to $13.6 billion and its intelligent cloud business, which includes cloud business Azure, grew 23% to $15.1 billion.

The company said Azure grew 50% in the quarter, compared with estimates for 46%.

"Azure revenue growing 50% which we note is well above bullish Street whisper expectations of 46% heading into the print," Wedbush said in a note.

Revenue in personal computing was up 19% to $13 billion as demand for its tablets and laptops continued to benefit from work from home trend.

"Over a year into the pandemic, digital adoption curves aren’t slowing down. They’re accelerating, and it’s just the beginning,” said Satya Nadella, chief executive officer of Microsoft.