Microsoft, who passed the $1 trillion market cap milestone a few weeks ago, continues to fire on all cylinders with the latest earnings results. Nearly every category is up, some significantly. Revenue is up 12% to $33.7 billion for the quarter, commercial cloud is up a whopping 39% to $11 billion, and $11 billion seems to be the theme of the day:
Q4 FY19 revenue by segment
? Productivity & Business Processes: $11 billion ⬆️ 14%
?️ Intelligent Cloud: $11.4 billion ⬆️ 19%
? More Personal Computing: $11.3 billion ⬆️ 4%— Microsoft (@Microsoft) July 18, 2019
About the only thing down in this blockbuster earnings release was gaming revenue, which declined 10% (down 8% in constant currency) with Xbox software and services revenue down 3% (down 1% in constant currency). This isn’t as alarming as it could be, however, with a typically soft 4th quarter (no holidays or back to school to boost revenues), and a looming Xbox Scarlett and the new game streaming service xCloud looming on the horizon, perhaps giving gamers pause to wait for the next big thing.
The rest of “More Personal Computing” was up:
Revenue in More Personal Computing was $11.3 billion and increased 4% (up 6% in constant currency), with the following business highlights:
- Windows OEM revenue increased 9% (up 9% in constant currency)
- Windows Commercial products and cloud services revenue increased 13% (up 16% in constant currency)
- Surface revenue increased 14% (up 17% in constant currency)
- Search advertising revenue excluding traffic acquisition costs increased 9% (up 10% in constant currency)
- >Gaming revenue declined 10% (down 8% in constant currency) with Xbox software and services revenue down 3% (down 1% in constant currency)
Office 365 Commercial revenue growth was up 31%, there are now 34.8 million consumer Office 365 subscribers, and LinkedIn really seems to be catching on:
LinkedIn revenue increased 25% (up 28% in constant currency) with record levels of engagement highlighted by LinkedIn sessions growth of 22%
There really just isn’t anything to complain about, and even though Microsoft has already gained from its trillion dollar position, expect it to continue on the upswing.
