Microsoft lifts revenues 17% to over USD 30 bln in Q4, again boosted by cloud services

News General Global 20 JUL 2018
Microsoft lifts revenues 17% to over USD 30 bln in Q4, again boosted by cloud services

Microsoft has again reported another very solid set of results for its fiscal fourth quarter to end June, again helped by Microsoft Cloud, with commercial cloud jumping 53 percent. Full year revenues meanwhile passed the USD 100 billion mark. CEO Satya Nadella said investments in the intelligent cloud and intelligent edge were now paying off and that Microsoft will continue to expand its reach with new products into large and growing markets. 

Revenues for Q4 increased 17 percent to USD 30.1 billion, with the operating profit up 35 percent to USD 10.4 billion, the net profit going 10 higher to USD 8.9 billion and earnings per share lifting 7 percent to USD 1.14 per share. The results include a tax benefit of USD 104 million related to Tax Cuts and Jobs Act (TCIA) and restructuring charges of USD 306 million. Microsoft returned USD 5.3 billion to shareholders in the form of dividends and share buybacks, up 16 percent from the year before. 

 At Intelligent Cloud, revenues climbed 23 percent to USD 9.6 billion. Server products and cloud services revenue jumped 26 percent, itself driven by Azure, where revenues surged 89 percent.  

At Personal Computing, revenues lifted 17 percent to USD 10.8 billion, with increases from all segments. Revenues went up 23 percent for Windows commercial products and cloud services, 39 percent at Gaming, and 25 percent at Surface. Search advertising acquisition costs increased 17 percent, driven by higher revenue per search, and search volume.  

Finally, at Productivity and Business Process, which includes Linkedin, revenues advanced 13 percent to USD 9.7 billion. Revenues at office commercial products and cloud services revenue went 10 percent higher, driven by Office 365 commercial revenue growth of 38 percent. Office consumer products and cloud services revenue advanced 8 percent, with Office 365 consumer subscribers rising to 31.4 million, from 30.6 million in the previous quarter. At LinkedIn, revenues climbed 37 percent. 

For the full year, revenues rose 14 percent to USD 110.4 billion and the operating profit advanced 21 percent to USD 35.1 billion. The net profit meanwhile fell 35 percent to USD 16.5 billion, with diluted EPS off 34 percent to USD 2.13, hurt earlier this year by charges arising from the US corporate tax reform.

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General

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Microsoft,  LinkedIn

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Global

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Sales figures, Financial figures

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