Why Did Microsoft’s Income Increase in Pandemic?

Why Did Microsoft’s Income Increase in Pandemic?

On 27th October, Microsoft released the first-quarter financial results that ended on 30th September 2020. In the report, it was stated that Microsoft’s revenue was increased by 12% than last year with $37.2 billion. Also, the net income was increased by 30% with a total of $13.9 billion. Even in these tough times when the economy of the world is shifting, Microsoft managed to boost its growth. The aim of the company during Covid-19 was to ensure the safety of employees and providing technology and better resources for its customers.
The major profit which Microsoft secured was in the lockdown period. People weren’t going outside and to entertain themselves, they were playing video games, working from home, and connecting through video conferencing. This gave enormous benefit to the company.

Cloud Services and Microsoft Office 365:

There is no doubt in saying that Cloud services played a key factor in increasing the revenue of the company. Microsoft Office 365 consumers increased rapidly which directly increased the Office 365 revenue growth by 21%. Due to the deal with SpaceX, the revenue of Azure also increased by up to 48%. More businesses started to depend upon the cloud services which Microsoft provides to its consumers. Microsoft consumers subscribers increased to 45.3 million which is a jump of 27%.


In addition to Cloud services and Microsoft office, Surface also played a critical role in increasing the earnings of the company. The revenue of Surface alone increased up to 37% which is a giant leap that gave Microsoft a huge boost of $1.5 billion. Even though Microsoft didn’t release any new surface products this year but they still managed to make an enormous profit from it.
Surface laptop Go device and an updated version of Surface Pro X were launched earlier in October but they will be count in the next quarter’s revenue.


With the increase in the gaming side, Xbox services have also increased greatly by 30% compared to the last year. Enormous numbers of gamers have used these services for entertainment purposes and to kill boredom. The company is also planning to launch its upgraded version of the Xbox Series on November 10th.

LinkedIn and Search revenue:

The revenue of LinkedIn also increased by 16% throughout these years although search revenue has decreased by 10%. The company has categorized its businesses into three types, buckets, intelligent cloud, and personal computing.


Within the intelligent cloud revenue, Microsoft has managed to make a profit mainly from the Azure cloud. In business and buckets, Microsoft office 365 and LinkedIn helped a lot. In conclusion, the minds of this company knows how to benefit even in tough times and is working hard to ensure great customer satisfaction.

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