Wall Street said the continued economic turmoil caused by the COVID-19 epidemic had had no impact on Microsoft’s Q4 earnings in the q4 quarter. Because the company’s methodical business diversification policy over the past decade is playing its due role. The surge in demand for telecommuting solutions has been a powerful reversal of the $450 million in revenue from Microsoft’s physical retail business, which has seen a “L” decline compared to Apple’s, and the indefinite suspension of some partners and customers during the quarter.
Like many analytics firms, Forbes magazine has questioned whether Microsoft’s revenue growth during the COVID-19 pandemic will be sustained.
For example, as the number of cases grows again, will companies actively embrace the company’s productivity suite to overcome the devastating effects of an epidemic?
Based on the previous quarter’s report, a glimpse of the impact of COVID-19 on corporate revenue. We found that not only did Microsoft become at risk during this period, but revenue in its smart cloud and productivity divisions also grew continuously, putting it in a relatively favorable position in the market.
Microsoft adjusted its revenue outlook early on, and most analysts were pleased with the productivity and business unit’s nearly $11.9 billion revenue growth and stability assessment, especially as Azure and Intelligent Cloud contributed modest $13.5 billion in modest growth.
Wall Street, however, also noted that in the worst case, Microsoft’s return on investment could be relatively flat, with adjusted U.S. earnings of $1.37, at best, not exceeding its guidance revenue of $36.8 billion (up nearly 9 percent from a year earlier).
While Microsoft is enjoying slow growth in Azure and Office 365 revenue, Windows license and hardware sales are expected to decline.
The company is now planning to launch a new generation of Xbox Series X consoles later this year, but the old models are already in stock supply.
In the long run, however, value-added subscription services such as the Xbox Game Pass still have relatively strong revenue forecasts.