Why did Microsoft’s revenue increase in the pandemic?

Tech Trends

On October 27, Microsoft released financial results for the first quarter ended September 30, 2020. report, it was stated that Microsoft’s revenue increased by 12% over last year with $37.2 billion. Additionally, net income increased by 30% to a total of $13.9 billion. Even in these difficult times when the world’s economy is changing, Microsoft has managed to boost its growth. The company’s goal during Covid-19 has been to ensure employee safety and provide better technology and resources for its customers.
The biggest profit that Microsoft secured was in the lockdown period. People didn’t go out to have fun, they played video games, worked from home and connected via video conferencing. This gave a huge benefit to the company.

Cloud Services and Microsoft Office 365:

It goes without saying that cloud services played a key role in increasing the company’s revenue. Microsoft Office 365 consumers increased rapidly, which directly increased Office 365 revenue growth by 21%. Due to the agreement with SpaceX, Azure revenue also increased by up to 48%. More companies have started to depend on the cloud services that Microsoft offers its customers. Microsoft consumer subscribers increased to 45.3 million, up 27%.


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


With the increase on the gaming side, Xbox services have also increased a lot by 30% compared to last year. Huge number of gamers used these services for entertainment purposes and to kill boredom. The company also plans to release its updated version of the Xbox Series on November 10th.

LinkedIn and search revenue:

LinkedIn revenue also increased by 16% over those years, although search revenue declined by 10%. The company has categorized its business into three types, buckets, smart cloud and personal computing.


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

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