Microsoft Q1 earnings look good: $18.53b revenue, $5.24b net income, Surface growth
Microsoft has reported earnings for its fiscal first quarter, beating analyst expectations in the process. The Redmond-based company garnered revenue of $18.53 billion (analysts expected $17.79 billion), net income of $5.24 billion, and operating income of $6.33 billion. Compared to last year's $16.01 billion in revenue, $4.47 billion net income, and $5.31 billion in operating income, Microsoft seems to be doing just fine.
Breaking down the company specifically, the Devices and Consumer division at Microsoft saw revenue grow 4 per cent to $7.46 billion. Microsoft says the Surface helped a little bit, growing to $400 million in revenue and showing "sequential growth in revenue and units sold over the prior quarter." With the Surface 2 and Surface 2 Pro just hitting the market, the company should see even more growth. Slipping Windows OEM revenue was reported during the quarter, however, falling 7 per cent year-over-year as the PC market begins a decline.
“Our devices and services transformation is progressing and we are launching a wide range of compelling products and experiences this fall for both business and consumers,” said Steve Ballmer, chief executive officer at Microsoft.
“Our new commercial services will help us continue to outgrow the enterprise market, and we are seeing lots of consumer excitement for Xbox One, Surface 2 and Surface Pro 2, and the full spectrum of Windows 8.1 and Windows Phone devices.”
Commercial revenue (enterprise) grew 10 per cent to $11.20 billion. “We continue to execute well across our businesses and we are seeing robust demand for our enterprise products and cloud services. Strong customer adoption of Office 365, Azure, and Dynamics CRM Online is accelerating our business transition to the cloud,” said Kevin Turner, chief operating officer at Microsoft.
Microsoft stock is rising handsomely in extended trading after beating year-on-year results and what analysts were expecting. The stock has risen close to six per cent at the time of publication.
Pocket-lint will be joining in Microsoft's earnings call later this afternoon to hear more specifics from the company. We're hoping to hear word on CEO Steve Ballmer's departure and the acquisition of Nokia's device unit.