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More Personal Computing Was Microsoft's Biggest Revenue Driver, Again
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Shares of Microsoft (MSFT - Free Report) touched a new all-time high on Friday as investors reward the tech company for its strong quarterly performance on Thursday. Yet while much of the talk has been about Azure and other new growth areas, Microsoft’s More Personal Computing unit, which includes Windows, still plays a hugely important role.
Microsoft stock is up roughly 38% over the last year. Some of the tech firm’s strong run can be attributed to its willingness to innovate in order to compete against other tech titans such as Amazon (AMZN - Free Report) and Alphabet (GOOGL - Free Report) . Investors should also be pleased to note that this innovation hasn’t hurt the company’s bottom line.
In fact, Microsoft’s adjusted quarterly earnings surged 36% from the year-ago period to hit $0.95 per share. Microsoft’s overall revenue climbed 16% to reach $26.82 billion. These big gains helped the company top quarterly estimates in both of these vital income statement metrics. “Our results this quarter reflect the trust people and organizations are placing in the Microsoft Cloud,” CEO Satya Nadella said in a company statement.
Intelligent Cloud revenue climbed 17% to $7.01 billion, which topped our exclusive non-financial metrics consensus estimate. This unit’s Azure cloud division also experienced the biggest individual growth at 93%. Investors should also note that Microsoft’s Productivity & Business Processes unit, which includes Office, Office 365, LinkedIn, and Dynamics CRM businesses, topped our NFM consensus estimates.
With that said, as Intelligent Cloud counties to grab a lot of attention, the company’s More Personal Computing unit accounted for the largest chunk of Microsoft’s total quarterly revenue.
More Personal Computing
This division includes Microsoft’s Windows, Gaming, Devices, and Search businesses. More Personal Computing revenue jumped 13% to $9.92 billion, which topped our NFM consensus estimate of $9.29 billion. More Personal Computing not only beat our estimate, it aslo posted the largest overall unit surprise at 7%.
More notably, More Personal Computing posted the largest business unit revenue, accounting for roughly 37% of overall quarterly revenues. For the first nine months of Microsoft’s current fiscal year, More Personal Computing reported revenue of $31.47 billion, which makes up more than 39% of the company’s total of $80.28 billion.
Diving into more details, Microsoft’s Windows OEM segment popped 4%, with OEM Pro revenue up 11%. Meanwhile, Windows commercial products and cloud services revenue surged 21%.
Other segments, including the Xbox heavy Gaming, as well as Surface and Search advertising divisions all saw double-digit growth.
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Image: Bigstock
More Personal Computing Was Microsoft's Biggest Revenue Driver, Again
Shares of Microsoft (MSFT - Free Report) touched a new all-time high on Friday as investors reward the tech company for its strong quarterly performance on Thursday. Yet while much of the talk has been about Azure and other new growth areas, Microsoft’s More Personal Computing unit, which includes Windows, still plays a hugely important role.
Microsoft stock is up roughly 38% over the last year. Some of the tech firm’s strong run can be attributed to its willingness to innovate in order to compete against other tech titans such as Amazon (AMZN - Free Report) and Alphabet (GOOGL - Free Report) . Investors should also be pleased to note that this innovation hasn’t hurt the company’s bottom line.
In fact, Microsoft’s adjusted quarterly earnings surged 36% from the year-ago period to hit $0.95 per share. Microsoft’s overall revenue climbed 16% to reach $26.82 billion. These big gains helped the company top quarterly estimates in both of these vital income statement metrics. “Our results this quarter reflect the trust people and organizations are placing in the Microsoft Cloud,” CEO Satya Nadella said in a company statement.
Intelligent Cloud revenue climbed 17% to $7.01 billion, which topped our exclusive non-financial metrics consensus estimate. This unit’s Azure cloud division also experienced the biggest individual growth at 93%. Investors should also note that Microsoft’s Productivity & Business Processes unit, which includes Office, Office 365, LinkedIn, and Dynamics CRM businesses, topped our NFM consensus estimates.
With that said, as Intelligent Cloud counties to grab a lot of attention, the company’s More Personal Computing unit accounted for the largest chunk of Microsoft’s total quarterly revenue.
More Personal Computing
This division includes Microsoft’s Windows, Gaming, Devices, and Search businesses. More Personal Computing revenue jumped 13% to $9.92 billion, which topped our NFM consensus estimate of $9.29 billion. More Personal Computing not only beat our estimate, it aslo posted the largest overall unit surprise at 7%.
More notably, More Personal Computing posted the largest business unit revenue, accounting for roughly 37% of overall quarterly revenues. For the first nine months of Microsoft’s current fiscal year, More Personal Computing reported revenue of $31.47 billion, which makes up more than 39% of the company’s total of $80.28 billion.
Diving into more details, Microsoft’s Windows OEM segment popped 4%, with OEM Pro revenue up 11%. Meanwhile, Windows commercial products and cloud services revenue surged 21%.
Other segments, including the Xbox heavy Gaming, as well as Surface and Search advertising divisions all saw double-digit growth.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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