Microsoft quarterly results beat expectations as cloud revenue soars

Daniel Fowler
July 20, 2018

Microsoft announced today that it earned a net income of $8.9 billion on revenues of $30.1 billion for the quarter ending June 30.

Global Equities Research analyst Trip Chowdhry described Microsoft earnings and its financial path as "super solid", noting that revenue and earnings per share beat market expectations.

Azure has a 16 percent share of the global cloud infrastructure market, making it the second-biggest provider of cloud services after Amazon.com Inc's (AMZN.O) Amazon Web Services, according to April estimates by research firm Canalys.

"Office consumer products and cloud services revenue increased 8 per cent and Office 365 consumer subscribers increased to 31.4 million", Microsoft said, adding that LinkedIn revenue increased 37 per cent.

For the quarter, Microsoft showed strong growth in all three of its major reporting areas - especially in cloud computing, where Wall Street most wants to see growth. Without the charge, yearly income was up 17 percent to $35.1 billion.

Microsoft hits $100bn in revenue for the first time thanks to cloud, Surface growth

"We had an incredible year, surpassing $100 billion in revenue as a result of our teams' relentless focus on customer success and the trust customers are placing in Microsoft", said Satya Nadella, chief executive officer of Microsoft. Intelligent Cloud's operating margins.

Revenue in the company's More Personal Computing division, which includes its Windows PC business, Surface products and gaming teams jumped 17 percent over a year ago to $10.8 billion.

Microsoft on Thursday said its revenue and profit climbed in the recently ended quarter, getting results from its bets on cloud computing services and artificial intelligence. Azure revenue was up 89 percent from a year ago in the fourth quarter. Office commercial products and cloud services revenue was up 10 percent with consumer Office up 8 percent. The Surface business is up 25% from this time last year, something Microsoft credits to both a strong hardware lineup this year and a 2017 performance that set the bar lower. Gaming revenue grew 39 percent over a year ago to almost $2.29 billion.

Office commercial products and Cloud services revenue increased 10 per cent, driven by Office 365 commercial revenue growth of 38 per cent.

More Personal Computing logged $42.2bn in revenues on the year, up 7 per cent from $39.3 the prior year - every quarter of the year, the Surface line hauled in $1bn in sales, we noted.

Samsung develops new DRAM for 5G, AI features of smartphones
Power consumption has been cut by up to 30 percent to improve performance of smartphones and extend their battery life. They have already selected their factory in Pyeongtaek, Korea as the production site once they being mass production.

Other reports by

Discuss This Article

FOLLOW OUR NEWSPAPER