Microsoft is likely to Report Strong Revenue Growth

Microsoft Corp could report significant revenue growth as demand for cloud services and software continued to grow in the last quarter.

The software giant for the quarter ending March is expected to generate approximately $49 billion in revenue, up about 18% year-over-year. Analysts surveyed by FactSet expect net income to grow 6.2% to about $16 billion. The company is expected to report its third-quarter results after the market closes on Tuesday afternoon.

During the pandemic, Microsoft and other enterprise software companies witnessed a surge in stock prices and sales as companies around the world adopted more digital tools to support remote work. This has increased the demand for Microsoft Office applications and their cloud infrastructure services.

Microsoft's cloud market boost has been criticized in Europe, where competitors are alleging antitrust complaints. Last summer, the French company OVHcloud filed a license agreement request that using Microsoft products in non-Microsoft clouds would be more expensive.

The U.S. Department of Justice is investigating the largest tech companies in the United States for alleged monopolistic behavior. About 20 years ago, a similar incident could destabilize Microsoft.