- Microsoft (NASDAQ:MSFT) shares are up 3.68% aftermarket following Q1 results that beat EPS and revenue estimates, met a Cloud sales goal early, and didn’t drown in the struggling global PC market.
- Cloud goal: Microsoft topped its goal of passing $20B in commercial cloud ARR this fiscal year.
- Intelligent Cloud: $6.9B in revenue (+13% in constant currency). Server products and cloud services were up 17% due to an Azure revenue growth of 89%.
- Productivity and Business Processes: Revenue was up 28% on the year in constant currency to $8.2B. Office commercial products and cloud services revenue grew 10% driven by Office 365 commercial sales, which were up 42%. Dynamics products and cloud services sales were up 13% due to a 69% growth in Dynamics 365. LinkedIn (NYSE:LNKD) contributed $1.1B.
- More Personal Computing: Revenue was $9.4B and down 1% in constant currency. Windows OEM was up 4%, which is expected in the current PC market. Windows commercial products and cloud services up 6% due to annuity revenue growth. Surface revenue was up 11% thanks to the new Surface Laptop and Gaming was flat on the year since the new Xbox didn’t report in this quarter. The company could still drop some Xbox One X details in the conference call.
- Press release
- Previously: What to look for in Microsoft's Q1 earnings today (Oct. 26)
- Previously: Microsoft beats by $0.12, beats on revenue (Oct. 26)
- Now read: Giants Take On The S&P 500
Original article