Microsoft reports solid quarterly earnings that beat estimates in nearly every category
Microsoft in its most recent earnings release for the quarter that ended September 30 bested nearly every estimate as it starts the first quarter of fiscal year 2020 off on solid footing.
Microsoft CEO Satya Nadella singled out the company’s Azure cloud computing service as one of its growth drivers, noting that “the world’s leading companies are choosing our cloud to build their digital capability.” Indeed, Azure revenue growth of 59 percent certainly contributed to the 30 percent revenue increase of the server products and cloud services category but growth has slowed slightly from a gain of 64 percent in the previous quarter and 73 percent before that.
While most every category experienced year-over-year revenue growth, the brand’s Surface hardware division was the exception as revenue slid four percent for the quarter. The division’s fortunes will likely improve this quarter as Microsoft introduced several new Surface hardware products earlier this month.
Xbox content and services revenue remained more or less unchanged, Microsoft said.
The company is expecting another solid quarter during the holiday period that’ll end on December 31, CFO Amy Hood said during a conference call.
Masthead credit: Microsoft building by gguy