For Microsoft, it's all about the cloud

Microsoft CEO Satya Nadella at the Geek Wire Summit

Microsoft CEO Satya Nadella at the Geek Wire Summit

Microsoft predicts that it will bring in 83 cents per share in earnings for its current quarter on an adjusted basis.

Profit in the period that ended September 30 exceeded analysts' estimates and sales rose 12 percent to $24.5 billion amid buoyant demand for Azure cloud services, used to store and run customers' applications in Microsoft's data centers.

As predicted Microsoft was able to beat their 2015 goal of $20 billion in annualized run rate for the commercial cloud.

Microsoft's stock price climbed 2.8 percent to $80.97 in early after-hours trading Thursday after the results were released. See the full release here.

Gaming revenue was down 1 percent, as Microsoft prepares for the launch of the Xbox One X console on November 7.

The actual numbers the company reported today were $24.5 billion in GAAP revenue and $0.84 in non-GAAP earnings per share.

Gujarat's maritime development a 'model' for entire nation: PM Modi
The prime minister had called ferry service his "dream project" while addressing a gathering at Gandhinagar on Monday. The service reduces the distance between the two towns from 310 km by road to 30 km, which can be covered in one hour.

Windows Phone is dead, the company's fitness-focused wristband has been axed and its streaming music service is no more, and Microsoft investors couldn't be happier with the company.

Azure sales rose 90 percent. Microsoft got 10 percent more revenue from Office commercial products and cloud services, which includes Office 365 as well as its more traditional Office software.

LinkedIn reported revenue of $1.1 billion in the previous quarter and it once again came in at exactly the same number. Windows OEM Pro, which derives its revenue from the business PC market, saw its revenues grow 3% in 2Q17. Notably, Surface sales has gone up for the first time in a long while. As for the Xbox division, revenue increased by only 1 percent, Xbox software and services revenue growth saw an increase of 21 percent offset by lower hardware revenue.

The tech giant kicked off its fiscal 2018 with an impressive three months, including earnings of 84 cents per share on an adjusted basis.

That said, cloud revenue continues to dominate Microsoft's earnings, raking in nearly $20 billion this past quarter.

"We're seeing customers, as they continue to use Azure, start to consume the premium services", like AI and data analytics software that are much more profitable, Hood said in an interview.

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.