Microsoft's cloud results led it to another big blowout of a quarter.
Microsoft announced solid quarterly earnings on Thursday, posting big beats on the top and bottom line against Wall Street expectations.
Shares in the software titan are trading at around 1.5% lower in after-hours trading following the results. It's not immediately clear why Microsoft shares are dipping after results that beat analyst consensus.
Here are the key figures:
- Earnings of $0.95 versus $0.85 expected
- Revenue of $26.82 billion versus $25.77 billion expected
Notably, these results come about a month after Microsoft announced a big shakeup that put Windows and Office into one unified product group, called "Experiences and Devices."
Wall Street was looking for continued growth in Microsoft's cloud businesses, mainly the Microsoft Azure cloud platform and the Office 365 productivity suite. And they got them: Microsoft's cloud businesses posted huge growth for the quarter.
Revenue in the Productivity and Business Processes segment was up 17% from the same period in 2017, hitting the $9 billion mark. That includes a 14% boost in Office revenue over the same period, as well as a 37% gain from LinkedIn. Office 365 for business now has 135 million monthly active users, says Microsoft.
The Intelligent Cloud unit saw its own 17% boost, up to $7.9 billion. This segment includes the Microsoft Azure cloud, which had a 93% revenue gain from the same period of 2017 — though Microsoft doesn't break out specific revenue figures for the service.
Finally, the biggest surprise of all came from the More Personal Computing unit, which encompasses Windows, Xbox, Surface, and all of Microsoft's other hardware initiatives. While that unit has seen stagnant growth for some while, it popped up 13% to $9.9 billion from the same period in 2017.