Microsoft reported a clean beat on the top and bottom lines for its fiscal Q1 earnings after the closing bell on Thursday.
Shares in Microsoft stayed flat at about $US78.70 a share following the earnings release.
- Earnings: $US0.84 versus $US0.72 expected.
- Revenue: $US24.5 billion versus $US23.56 billion expected.
Investors will be especially pleased to see the progress of Microsoft’s all-important cloud computing business, which this quarter met and exceeded the company’s goal of $US20 billion in annual revenue.
The Productivity and Business Processes unit, which encompasses the Office business, LinkedIn, and the Dynamics CRM platform, saw a year-over-year gain of 28% to $US8.2 billion, reports Microsoft. Bolstering these results were the rapid growth of Microsoft cloud services: Revenue from the Office 365 cloud productivity suite was up 42% from the same period a year ago, and the Dynamics 365 cloud product is up 69%.
Intelligent Cloud, the unit that includes the Microsoft Azure cloud platform, is up 14% to $US6.9 billion. Azure itself came within spitting distance of doubling its revenue, growing 90% from the year-ago period. However, Microsoft doesn’t say how much that comes out to in real dollars, only sharing the growth statistic.
Finally, Microsoft’s More Personal Computing units , which includes the Windows, Surface PC, and Xbox businesses, was flat from the year-ago period, booking $US9.4 billion in revenue. The business of licensing Windows out to PC manufacturers was up 4%, says Microsoft, which outpaces the still-shrinking PC industry.
Otherwise, Surface revenue was up 12% from a year ago, which is good news for Microsoft following a dip in the previous quarter. And the Xbox division was up 1%, with a big boost to Xbox software and services offset by the lower selling price of the Xbox One console itself.
Get the latest Microsoft stock price here.
NOW WATCH: Tech Insider videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.