HomeWinBuzzer NewsMicrosoft's FY18 Q1 Earnings Report Reveals Another Huge Boost to Cloud Revenue

Microsoft’s FY18 Q1 Earnings Report Reveals Another Huge Boost to Cloud Revenue

Microsoft reported revenue of $24.5 billion, exceeding analyst expectations thanks to further cloud growth. Surface also saw a return to growth thanks to new hardware.


has exceeded analyst expectations once more, reporting $24.5 billion in revenue for its FY18 Q1 earnings report. The large total is thanks to growth in Surface, Office 365, Azure, and Windows.

Analysts predicted $1 billion less than Microsoft's outcome, the company surging ahead due to a 90% year-over-year revenue increase in Azure revenue. The increase puts the company's commercial cloud revenue for this quarter at $5 billion.

Meanwhile, operating income sat at $7.7 billion, increasing by 15%, and diluted earnings per share increased 17% to $0.84.

“This quarter we exceeded $20 billion in commercial cloud ARR, outpacing the goal we set just over two years ago,” said CEO Satya Nadella in a press release. “Our results reflect accelerating innovation and increased usage and engagement across our businesses as customers continue to choose Microsoft to help them transform.”

Office and Surface

As well as cloud, Microsoft saw a large boost in its Office 365 commercial revenue. A 42% increase also propelled growth in commercial products and cloud services revenue, which increased 10%.

Importantly, this month also marked a return to growth for Surface, which had been faltering somewhat due to lack of new hardware. The new Surface Laptop propelled a growth of 12% in that area.

Gaming revenue remains a struggling point for Microsoft, with an increase of just 1%. Though Xbox software and services revenue saw a growth of 21%, a decrease in hardware revenue almost offset it entirely.

Windows, on the other hand, saw a 4% increase, 7% of that going to Pro, but non-pro falling by 1%. Windows commercial also saw a growth of 7%.

In all, it's a solid quarter to Microsoft, with only minor revenue decreases. After hours, its stock price has shot up by 4.86%, to 82.59.

“Our strong start to the fiscal year reflects the impact of our continued investment in product innovation and sales capacity to capture expanding market opportunities,” said CFO Amy Hood.

Ryan Maskell
Ryan Maskellhttps://ryanmaskell.co.uk
Ryan has had a passion for gaming and technology since early childhood. Fusing the skills from his Creative Writing and Publishing degree with profound technical knowledge, he enjoys covering news about Microsoft. As an avid writer, he is also working on his debut novel.

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