Microsoft Corporation (MSFT) Q1 Earnings Beat As Azure Sales Surge 90%

Intelligent Cloud: This segment, which includes results from server products and services (including Windows Server and Azure), grew 14 percent to $6.9 billion. The company has delivered early: In its Q1 2018 earnings released today, the company has shared its cloud annualized run rate has hit $20.4 billion.

The stock is up just 2 percent in after-hours trading now. At the same time, as new data centers come online and become more efficient, Microsoft has been making progress in increasing the profitability of these services, with commercial cloud gross margin widening to 57 percent.

Total revenue in the company's More Personal Computing division, which also includes the Windows operating system, was $9.4 billion, beating the $8.8 billion average estimate of four analysts polled by Bloomberg.

Microsoft Corp (MSFT.O) reported a better-than-expected quarterly profit on Thursday as demand for its cloud computing services for companies rose and personal computer software business stabilized. "Our results reflect accelerating innovation and increased usage and engagement across our businesses as customers continue to choose Microsoft to help them transform".

Microsoft ended the quarter with 28 million Office 365 consumer subscribers, up from 27 million from the previous quarter. Productivity revenue, mainly Office software, climbed 28 percent to $8.2 billion. Windows commercial products and cloud services up 6% due to annuity revenue growth.

Wall Street was expecting Microsoft to report first quarter earnings of 72 cents a share on revenue of $23.56 billion.

As you can see from the image above, the biggest areas of growth, in terms of percentage, are Azure, Dynamics 365, and Office 365 commercial.

On the Xbox front, Microsoft says hardware revenue declined significantly - due to lower pricing and fewer sales - but overall revenue still ticked up ever so slightly thanks to increased Xbox Live transactions.

Related:

  • Apple Rejects Bloomberg's Claim Of Compromising Over Face ID Accuracy

    Apple Rejects Bloomberg's Claim Of Compromising Over Face ID Accuracy

    Due to the shear amount of traffic hitting the Apple Store website, it can be hard to load in the minutes after a product launch. If you are a member of the iPhone Upgrade Program, you can always check the upgrade availability through the Apple Store app.
    Iraqi PM Abadi demands Kurds cancel secession bid as price for talks

    Iraqi PM Abadi demands Kurds cancel secession bid as price for talks

    Predominantly Shi'ite Iran and its Sunni rival Saudi Arabia are locked in a proxy war for influence in the Middle East. The Kurds' referendum last month overwhelmingly backed independence from Baghdad.

    National Park Service proposes peak season entrance fee at 17 national parks

    Denali season passes would jump from $40 to $75 under the proposal, but a nationwide annual park's pass would remain $80. A public comment period on the proposed fee increases began yesterday and ends November 23.
  • Paul Walker's Daughter Settles with Porsche Over Actor's Death

    See how one of Walker's former Fast & Furious co-stars tributed him in the BET Breaks video above. "Through his estate, Mr. Now 18, the younger Walker reached a settlement with Porsche on October 16, according to documents obtained by the Blast .
    Support for Cannabis Legalization Reaches All-Time High

    Support for Cannabis Legalization Reaches All-Time High

    For the first time since that 1969 poll, a majority of Republican voters told Gallup they are in favor of legalizing marijuana. This is the highest level of public support Gallup has found for the proposal in almost a half-century of measurement.
    Former production assistant becomes latest Harvey Weinstein accuser

    Former production assistant becomes latest Harvey Weinstein accuser

    He asked to perform oral sex on her and she refused, but he persisted and she "froze", allowing him to continue. The lawsuit adds: "Again, Weinstein displayed persistence and would not take no for an answer".
  • Fremont County authorities to host Drug Take Back event

    Fremont County authorities to host Drug Take Back event

    If you don't see a location near you, you can check the Drug Enforcement Administration's website for other options. The haunted house will be from 5 to 9 p.m. and is sponsored by the Gonzales Police Officers Association.
    Couriers to let themselves in with new Amazon app

    Couriers to let themselves in with new Amazon app

    But imagine if a courier could temporarily be given access to your home, so they could drop off your package and leave. We do not recommend using in-home delivery if your pet can access the front door on delivery day.
    The Piano Man Billy Joel, 68, welcomes baby number three

    The Piano Man Billy Joel, 68, welcomes baby number three

    The website says Joel's eldest daughter, 31-year-old Alexa Ray Joel , was at her father's side for the delivery. Washington D.C [USA], October 24: " Piano Man " singer Billy Joel has become a father for the third time.
  • Father of missing girl sent outside as punishment arrested

    Father of missing girl sent outside as punishment arrested

    He didn't answer when reporters asked about his adopted daughter, Sherin, and why his story about her disappearance changed. Mathews was initially charged with abandoning or endangering a child when he first reported Sherin missing.
    'Golmaal Again' 4th day box office collection!

    'Golmaal Again' 4th day box office collection!

    The film earned Rs 30 crore net approx on Friday and performed excellently even on Saturday and Sunday. The comedy entertainer is expected to complete the first week to a total of Rs 135 crore net approx.
    The Kardashians Sign On For Five More Seasons For $150 Million

    The Kardashians Sign On For Five More Seasons For $150 Million

    We have eight!' 'I know, we have so many babies, ' Kylie says smiling. "We look forward to continuing our collaboration for years to come".

Comments

Other news