|Microsoft, Alphabet and Amazon all beat and are rising AH. The Cloud is on fire!|
Microsoft Rising: FYQ1 Beats, Nadella Says Cloud Ahead of Plan
By Tiernan Ray
Updated Oct. 26, 2017 4:20 p.m. ET
Microsoft ( MSFT) this afternoon reported fiscal Q1 revenue and earnings per share that easily topped analysts' expectations, sending its shares higher in late trading.
Revenue in the three months ended in September rose to $24.5 billion, yielding EPS of 84 cents.
Analysts had been modeling $23.52 billion in revenue, and 72 cents a share in earnings.
Chief Satya Nadella said that the company's "commercial cloud" business topped $20 billion in "annualized recurring revenue," which he said was faster than the company's promise two years earlier.
Microsoft's "productivity" division, including its "Office" suite, saw sales rise 28%, to $8.2 billion.
Revenue in the "Intelligent Cloud" group was up 14% at $6.9 billion. That includes Azure cloud computing, which saw sales rise 90%.
The "More Personal Computing" division saw sales decline 1% in constant-currency terms, to $9.4 billion. That includes a 4% increase in the manufacturer revenue for Windows software licenses on PCs, a 12% jump in Surface computer devices, and a 1% rise in video game revenue, including a 21% rise in Xbox software and services.
Microsoft stock is up $1.10, or 1.5%, at $79.86, in late trading.
[Microsoft is now trading at $81.71-81.74 AH.]