Microsoft Sales & Profit Grow, Surface Struggling
Microsoft has released its FY18 Q2 financial results showing a 12 per cent increase in revenue to US$28.9bn and a growth in its operating income by 10 per cent to US$8.7bn.
The personal computing area has not made much progress with personal computing revenue growing 2 per cent at US$12.2bn with Surface revenue only growing 1 per cent.
Its cloud computing service Azure, had its revenue soar by 98 per cent.
Microsoft’s revenue in Intelligent Cloud was US$7.8bn and increased 15 per cent. Its server products and cloud services revenue increased 18 per cent which Microsoft says is driven by Azure revenue growth of 98 per cent.
Satya Nadella, chief executive officer of Microsoft says, “This quarter’s results speak to the differentiated value we are delivering to customers across our productivity solutions and as the hybrid cloud provider of choice.
“Our investments in IoT, data, and AI services across cloud and the edge position us to further accelerate growth.”
Amy Hood, EVP and CFO at Microsoft says, “We delivered another strong quarter with commercial cloud revenue growing 56% year-over-year to $5.3bn.
“Strong execution from our sales teams and partners is driving growth across our businesses.”
Its GAAP net loss was US$6.3bn and non-GAAP net income was US$7.5bn, the GAAP diluted loss per share was US$(0.82) and non-GAAP diluted earnings per share was US$0.96.
Microsoft’s results include a net charge of US$13.8bn related to the Tax Cuts and Jobs Act in the US.
Read more about Microsoft’s Q2 FY18 results here.