Share Tweet Profit soars for Microsoft fueled by cloud, business services The results showed the strongest commercial quarter ever, for Microsoft, said chief financial officer Amy Hood Tweet Email The Microsoft sign is shown on top of the Microsoft Theatre in Los Angeles, California, US, October 19,2018 PHOTO: REUTERS
SAN FRANCISCO: Microsoft on Thursday posted quarterly earnings that trounced expectations, citing growth in partnerships with companies on technology and cloud computing services
The US technology titan, shifting in recent years to business services from consumer tech, reported its net income rose 49 per cent to $132 billion on revenue that was up 12 per cent to $337 billion
Microsoft’s profit in the fiscal fourth quarter that ended June 30 was helped by at $26 billion tax benefit, according to the company
Study shows people are not ready to let Windows 7 go
The results showed the “strongest commercial quarter ever,” for Microsoft, said chief financial officer Amy Hood
Chief executive Satya Nadella said the results closed out a record fiscal year for the tech giant, which has the largest market value of any company at more than $1 trillion.
“It was a record fiscal year for Microsoft, a result of our deep partnerships with leading companies in every industry,” said Nadella
“Every day, we work alongside our customers to help them build their own digital capability…This commitment to our customers’ success is resulting in larger, multi-year commercial cloud agreements and growing momentum across every layer of our technology stack.
”
Net income for the fiscal year more than doubled to $392 billion on revenue that was up 14 per cent to $1258 billion, according to the earnings report
Microsoft shares rose 14 per cent to $13835 in after-market trading that followed the release of the earnings figures
“Microsoft is firing on all cylinders now, growing big in growing markets, and even managing growth in mature markets like PCs (personal computers),” said technology analyst Patrick Moorhead of Moor Insights and Strategy
The Redmond-based company is “cementing its spot” as a provider of software, infrastructure and platforms hosted as services in the internet cloud, according to Moorhead
Microsoft reported growth across all its businesses except Xbox gaming unit where revenue declined 10 per cent
A reason is likely that the latest generation Xbox console that debuted nearly six years ago is getting “long in the tooth,” with a successor on the horizon, Moorhead said
Microsoft in June gave the world a first glimpse of a powerful next-generation Xbox that it aims to release late next year
Xbox head Phil Spencer pulled back the curtain on “Project Scarlett,” a successor to the Xbox One that will give game makers “the power they need to bring their creative visions to life”
The new Xbox was promised to be released in time for the Christmas holiday shopping season in 2020
Xbox battles in the console gaming arena with Sony, which is working on a new generation PlayStation
The commitment to consoles by longtime contenders in the market comes with the rise of video games hosted as subscription services streamed Netflix-style from data centres in the internet cloud, which plays to Microsoft’s cloud and Xbox strengths
Revenue from productivity and business processes division that includes business and consumer cloud services as well as career-focused social network LinkedIn was up 14 per cent to $11 billion, according to the earnings report
Money taken in at LinkedIn jumped 25 per cent with the service seeing record levels of engagement, Microsoft said
The company also saw revenue rise from server products; Windows operating software; online search advertising, and its Surface table computers
Microsoft missed mobile dominance by ‘tiny’ margin
Surface revenue growth was “surprising” considering the overall personal computer market was flat, according to Moorhead
“This quarter was an absolute ‘blow out quarter’ across the board with no blemishes and in our opinion speaks to an inflection point in deal flow as more enterprises pick Redmond for the cloud,” Wedbush analyst Daniel Ives said in a note to investors, referring to Microsoft’s headquarters in Washington State.
“While the stock has been very strong and a trillion-dollar market cap is now reached, we believe the cloud party is just getting started in Redmond”
from WordPress https://ift.tt/2Y0UYud
via IFTTT
No comments:
Post a Comment