Microsoft reported strong third quarter results for fiscal 2021 with revenues up 19% YoY to $41.7bn and EPS at $2.03, up 45% in the same period. Revenues grew across all divisions with their Intelligent Cloud segment jumping 26% to $15.1bn, driven mainly by a 50% growth in Microsoft Azure’s revenues. Personal Computing also jumped driven by gaming sales. They also added that Microsoft Teams users almost doubled in a year to 145mn. Overall, cash flow from operations were at $22.2bn, up 27% YoY and the company also gave healthy guidance across divisions for this year.
Microsoft’s bonds were flat with its 3.7% 2046s at 115.3, yielding 2.84%
Alphabet reported a 34% YoY increase in revenues to $55bn in the quarter alongside a substantial increase in operating margins to 30% from 19% last year. Net income rose 162% to $17.9bn vs. expectations of $10.5bn. Google’s Core Search revenues jumped 30% to $31.9bn led by retail ads with YouTube’s revenues up 49% to $6bn. The company sits on a cash pile of $135bn and has announced a $50bn Class-C share buyback program.
Alphabet’s bonds were almost unchanged – its 2.05% 2050s were at 84.2, yielding 2.85%.