Could Microsoft Earnings Have Been Better?

Could Microsoft Earnings Have Been Better?

Could Microsoft Earnings Have Been Better?

The Windows and Devices Group was effectively split up and put inside the Experiences and Devices group (which includes Microsoft's Office 365 and other productivity applications) and the Cloud and Artificial Intelligence Platform group (which includes infrastructure products like Windows Server and the Azure cloud platform).

"We delivered double-digit revenue and operating income growth driven by 58 per cent growth in our commercial cloud revenue". And they got them: Microsoft's cloud businesses posted huge growth for the quarter.

Microsoft reported earnings per share of 95 cents on $26.8 billion in revenue - up 16 percent over last year - with net profits of 7.4 billion for the third quarter of its fiscal year that ends in June.

The Intelligent Cloud unit saw its own 17% boost, up to $7.9 billion.

In terms of the divisions, revenue in More Personal Computing was $9.9 billion and increased 13%, the commercial cloud performed strongly during the quarter as well, with Azure recording a revenue increase of 93%.

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“With consistent investment and strong sales execution, this quarter we achieved better than expected performance across all segments, ” said Amy Hood, executive vice president and chief financial officer at Microsoft. Analysts were expecting Microsoft to report earnings of 85 cents a share on $25.8 billion in revenue. Office 365 commercial products and cloud services revenue grew 12% with Office 365 commercial revenue up 40%.

Microsoft recently shook up its top ranks that highlights its cloud services and de-emphasizes the Windows business that was its bread and butter for years.

Microsoft shares were down a fraction in after-hours trading on the stock market today.

Microsoft also saw an 18 percent in gaming revenue from its Xbox software and services, and a 32 percent rise from its Surface devices.

Microsoft stock is up 10 percent since the beginning of 2018.

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