Microsoft beats estimates with $22.3 billion in quarterly revenue
Cloud services were strong, but the company's consumer devices revenue was generally flat or down, except for Surface computers.
This afternoon, Microsoft announced better-than-expected revenue of $22.3 billion, beating financial analysts’ consensus estimates, which came in just under $22 billion. Earnings per share were also higher than expected at $0.76. Net income was $6.0 billion.
Microsoft stock is up in after-hours trading.
Revenue rose in most of Microsoft’s business units, including its all-important Intelligent Cloud unit. However, “More Personal Computing,” which includes Windows, Windows Phone, Xbox and Search, saw an aggregate decline. Total revenue there was down roughly two percent to just over $9 billion.
Search advertising revenue ex-TAC grew nine percent, “driven by increased revenue per search and search volume.” Windows revenue was flat; Xbox revenue was off roughly five percent, while Windows Phones were down a whopping 72 percent. Surface computer revenue was $926 million, down slightly from last quarter but up 38 percent year over year.
The company said that it expected the LinkedIn acquisition to close next quarter.