Microsoft Corporation (MSFT) beat earnings expectations on Monday, saying its cloud business was continuing to grow at a fast clip. The company also reported strong growth in its other businesses, including its Office division. The stock opened at $98.13, up 0.8 percent on the day.
“Microsoft’s cloud unit continued to posting strong growth, as did its other businesses, as customers continue to trust the company’s technology to power their work,” said analysts in a research report. “Our estimate is that the cloud product will generate $26.9 billion in revenue by 2021, versus $24.5 billion in 2020.”
Microsoft’s cloud division, which includes its Azure cloud service and the Office 365 cloud products, has seen rapid growth in recent years, with annual sales reaching $12.5 billion in 2018. The company has been investing in its cloud infrastructure and features, as well as its software development tools, in order to keep up with the competition.