Revenue in the three months ended in March rose 16% year over year to $26.82 billion, yielding earnings per share of 95 cents. Diluted earnings per share comes out to $0.95, a 36% (31% CC) increase from the same quarter previous year.
Microsoft stock is up 10 percent since the beginning of 2018.
"Our results this quarter reflect the trust people and organisations are placing in the Microsoft Cloud". "We are innovating across key growth categories of infrastructure, AI (artificial intelligence), productivity, and business applications to deliver differentiated value to customers".
The company notched wins across the board.
Windows commercial products and cloud services, a business where Microsoft sells a package of security and other premium services to corporate Windows users, posted revenue growth of 21%, an important benchmark because Microsoft views this segment as the future of Windows in a market where PC usage is shrinking.
The Surface numbers are notable because it's perhaps the first indication that its hardware successes aren't necessarily limited to the Xbox (insert Zune joke here).
In an interview, Amy Hood, the company's chief financial officer, described the quarter as a "very strong" performance, "driven by the ongoing demand for our cloud services".
The company provided no guidance but said it would do so on the conference call. Revenues at office commercial products and cloud services revenue increased 14 percent, driven by Office commercial revenue growth of 42 percent.
Personal Computing, which includes Windows, devices, gaming and search ads, produced $9.92 billion in revenue, up 13 percent year over year. Including contributions from cloud-based versions of its Office productivity software and online gaming subscriptions, recurring revenue streams now account for about 30 percent of Microsoft's sales, said Michael Nemeroff, an analyst at Credit Suisse.
Amazon juggernaut keeps on rolling as it doubles its profit
Revenue from Amazon's "other" category, which includes advertising sales, more than doubled to $2 billion in the first quarter. During an investor's call, Amazon CFO Brian Olsavsky said the paid subscription service was costing the company more to run.
Browns Mock Draft: Cleveland Takes Baker Mayfield First
The Jaguars, who lost the AFC championship game, got Pro Bowl linebacker Telvin Smith (fifth round, 2014) on Day 3 of the draft. Kyle Shanahan is all too aware of the importance of matchups and Derwin James is a matchup weapon. " Whatever happens, happens.