Microsoft FY18 Q3 earnings: $26.8 billion on cloud and Office growth

Microsoft Earnings: What to Look For

Microsoft earnings beat analyst expectations

Revenues advanced 16 percent from the year before to United States dollars 26.8 billion and the operating profit lifted 23 percent to USD 8.3 billion. Its net profit was roughly $7.4 billion, up from almost $5.5 billion during the year-ago quarter. He revealed that Sea Of Thieves "drove gameplay" across Microsoft Windows and Xbox One up to 10 million hours of viewership including a platform like Mixer.

Much of Microsoft's recent growth has been fuelled by its cloud computing business as more enterprises seek to cut data storage costs by adopting cloud-based software and moving their applications to data centres.

"Our results this quarter reflect the trust people and organizations are placing in the Microsoft Cloud", Microsoft CEO Satya Nadella said in the press release.

The company notched wins across the board. Microsoft as usual didn't provide an exact revenue figure for Azure but did say revenue rose 93 percent year over year, which is down sequentially from 98 percent revenue growth.

"We delivered double-digit revenue and operating income growth driven by 58% growth in our commercial cloud revenue".

He added that more infrastructure and a sharp security focus was going to give Microsoft an edge in cloud services. The consensus estimates called for EPS of $0.85 on revenues of $25.77 billion. Office commercial products and cloud services revenue was up 14 percent, while Office consumer products and cloud services revenue rose by 12 percent. These third-party titles would most likely be the massively popular Fortnite, or even Microsoft's partnered Rare title Sea of Thieves. Revenues went up 21 percent for Windows commercial products and cloud services, 18 percent at Gaming, and 32 percent at Surface. This includes $9.92bn, up 13 per cent, year on year, from personal computing stuff: Windows, Surface and similar hardware, gaming, and search ads.

Finally, at Productivity and Business Process, which includes Linkedin, revenues went up 17 percent to Dollars 9 billion.

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