Intelligent Cloud segment, which includes its Azure on-demand computing services, revenues increased 14 percent to $6.9 billion, with Azure revenues surging 90 percent. Office commercial products and cloud services revenue grew 10% driven by Office 365 commercial sales, which were up 42%. The company, however, has long said that it wanted Azure to reach an annual run rate of $20 billion by the end of its 2018 fiscal year. Office consumer products and cloud revenues rose 12%, while Dynamics products and cloud revenues rose 13%, including a 69% increase in Dynamics 365 revenue.
Three quarters before a self-imposed deadline to achieve $20 billion in annualized revenue from its commercial cloud products and services, Microsoft announced Thursday that it had achieved that goal.
Microsoft purchased LinkedIn, the professional social network, in December for $27 billion, in part, to boost the Dynamics business.More news: New Zealand homes 'not for sale' to foreigners under new PM
Microsoft Corp. has ridden the cloud-computing wave for several quarters, and once again its revenues surged on the strength of its emerging business of selling web-based, on-demand computing services.
Microsoft Corporation (NASDAQ:MSFT) FQ1 2018 earnings were released after closing bell tonight, and the company posted earnings of 84 cents per share, a 17% increase from last year, on $24.5 billion in sales, a 12% year-over-year increase.
According to the earnings report, Microsoft saw an increase of 28 percent in revenue from productivity and business processes with $8.2 billion. "Our results reflect accelerating innovation and increased usage and engagement across our businesses as customers continue to choose Microsoft to help them transform". Although enterprise services revenue increased by 1 percent with growth in Premier Support Services offset by declines in custom support agreements. Windows OEM revenue went up by just four percent and commercial Windows and cloud services increased by seven percent.More news: 'Fuller House' star John Stamos engaged to model Caitlin McHugh
For the More Personal Computing segment, Microsoft reported $9.4 billion in revenue...
Wall Street was expecting Microsoft to report first quarter earnings of 72 cents a share on revenue of $23.56 billion.More news: India embarks on $32.4 billion state bank recapitalisation to boost economy