Microsoft yesterday announced better than expected earnings for FY19 Q3. The announced earnings of $1.14 per share beat the market expectations of $1.0 as did the revenue. Microsoft announced $30.6 billion revenue as compared to the $29.84 billion expected by analysts.
Solid earnings propelled Microsoft’s market cap briefly over $1 Trillion, though currently it is valued at $962 Billion. Talking about individual businesses, Surface business grown by healthy 21%, while commercial office products were the growth leaders. Check the earnings and segment wise highlights below.
Earning Highlights:
- Revenue was $30.6 billion and increased 14%
- Operating income was $10.3 billion and increased 25%
- Net income was $8.8 billion and increased 19%
- Diluted earnings per share was $1.14 and increased 20%
Segment wise Highlights:
Revenue in Productivity and Business Processes was $10.2 billion and increased 14% (up 15% in constant currency), with the following business highlights:
- Office Commercial products and cloud services revenue increased 12% (up 14% in constant currency) driven by Office 365 Commercial revenue growth of 30% (up 31% in constant currency)
- Office Consumer products and cloud services revenue increased 8% (up 10% in constant currency) and Office 365 Consumer subscribers increased to 34.2 million
- LinkedIn revenue increased 27% (up 29% in constant currency) with record levels of engagement highlighted by LinkedIn sessions growth of 24%
- Dynamics products and cloud services revenue increased 13% (up 15% in constant currency) driven by Dynamics 365 revenue growth of 43% (up 44% in constant currency)
Revenue in Intelligent Cloud was $9.7 billion and increased 22% (up 24% in constant currency), with the following business highlights:
- Server products and cloud services revenue increased 27% (up 29% in constant currency) driven by Azure revenue growth of 73% (up 75% in constant currency)
- Enterprise Services revenue increased 4% (up 5% in constant currency)
Revenue in More Personal Computing was $10.7 billion and increased 8% (up 9% in constant currency), with the following business highlights:
- Windows OEM revenue increased 9% (up 9% in constant currency)
- Windows Commercial products and cloud services revenue increased 18% (up 20% in constant currency)
- Surface revenue increased 21% (up 25% in constant currency)
- Gaming revenue increased 5% (up 7% in constant currency) driven by Xbox software and services revenue growth of 12% (up 15% in constant currency)
- Search advertising revenue excluding traffic acquisition costs increased 12% (up 14% in constant currency)
