Microsoft beats Wall Street targets on cloud services revenue

Microsoft hits $100bn in revenue for the first time thanks to cloud, Surface growth

Microsoft hits $100bn in revenue for the first time thanks to cloud, Surface growth

The US tech giant reported its net income increased 10 percent to $8.8 billion (roughly Rs. 50,500 crores) on revenue that was up 17 percent to $30.1 billion (roughly Rs. 2.07lakh crores) when compared with the same period a year ago.

Much of Microsoft's recent growth has been fueled by its cloud computing business, which has benefited from companies rushing to shift their workloads to the cloud to cut data storage and software costs.

The More Personal Computing group, which includes Windows, Surface and Xbox, was up 17 percent to $10.8 billion for the quarter ($42.2 billion for the year).

"We had an incredible year", chief executive Satya Nadella said in a release. LinkedIn has seen record levels of postings seeking employees due to a robust USA job market, according to Microsoft chief financial officer Amy Hood.

For the fourth quarter that ended on June 30, Redmond reported revenue of $30.1bn (around £23bn), up 17 per cent compared to $25.6bn in the year-ago quarter, and net income of $8.9bn.

Revenue of $30.1 billion, versus $29.2 billion expected.


Intelligent Cloud grew by 23% (20% CC), making it the fastest growing chunk of Microsoft's business, once again.

Revenue in a productivity and business processes category that included career-focused social network LinkedIn was up 13 percent in the quarter to $9.7 billion (roughly Rs. 66,800 crores), according to Microsoft.

Office 365 consumer costumers grew to 31.4 million, and Office products and cloud services revenue grew by 8% (6% CC). But the star, as always, was Azure, which grew revenues 89 percent. Corporate Windows revenue was up 14 percent, slightly ahead of the overall corporate PC market, with consumer revenue down 3 percent.

Surface followed up a strong third quarter, with another big annual jump of 25 percent to $1.1. billion in revenue for the fourth.

"In gaming, we're pursuing our expansive opportunity from the way games are created and distributed, to how they're played and viewed, surpassing ten billion revenue this year for the first time".

Microsoft's investment in gaming seems to be paying off, as gaming revenue increased by 39% (38% CC), with Xbox services revenue growing 36% (35% CC).

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