- Microsoft reported its quarterly earnings on Thursday — and posted results that easily surpassed Wall Street estimates.
- The company's earnings per share came in at $1.37, beating estimates of $1.21.
- Microsoft Azure saw its revenue grow 64% from the same period of 2018.
Before the bell, Microsoft was already the most valuable company in the world, with a valuation of over $1 trillion. At the time of this writing, that seems unlikely to change: The company is up a little over 1% in after-hours trading.
Here's what it reported:
- Earnings (adjusted) of $1.37 per share, handily beating estimates of $1.21.
- Revenue of $33.72 billion, beating the estimate of $32.77. That's up 12% from the same period of 2018.
Revenue in Microsoft's productivity-and-business-processes segment, which encompasses the Office business, was $11 billion, up 14% from the same period of 2018. Microsoft's results show that flagship businesses like Office 365, LinkedIn, and Dynamics all posted significant gains in the quarter — and that there are now 34.8 million subscribers to the consumer version of the Office 365 cloud suite.
Intelligent-cloud revenue was $11.4 billion, up 19% from the year-ago period. Notably, Microsoft Azure, the company's crucial cloud-computing platform, saw its revenue grow 64% from the same period of 2018, though Microsoft doesn't break out specific financial figures for that business. That represents a deceleration from the prior two quarters, when Azure posted growth of 73% and 76%.
More personal computing, which accounts for the beleaguered Windows business, saw its revenue edge up 4% from the same time last year to $11.3 billion. That includes the Windows OEM business, which grew 9%, and the Surface hardware line, which saw revenues go up 14%. However, Microsoft also said that gaming revenue was down 10% in the quarter, with Xbox software and services specifically seeing a 3% dip.
As this was the fourth quarter of Microsoft's fiscal year, it also announced full-year results:
- Revenue of $125.8 billion, up 14% from last year.
- Net income of $39.8 billion on a non-adjusted basis, up 137% from the year-ago period.
- Diluted earnings of $5.06 per share, non-adjusted, up 138% from the year-ago period.
In short: Microsoft is a cloud powerhouse, and, other than a potential bump in Azure growth this quarter, shows no signs of slowing down.
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