Microsoft on Tuesday reported strong quarterly earnings, powered by demand for cloud computing. The tech titan said it made a profit of $16.7 billion on revenue of $49.4 billion in the first three months of this year, eight percent and 18 percent, respectively, more than in the period a year earlier. "Going forward, digital technology will be the key input that powers the world's economic output," said Microsoft chief executive Satya Nadella. "Across the tech stack, we are expanding our opportunity and taking share as we help customers differentiate, build resilience, and do more with less." Microsoft shares rose more than four percent to $282.44 on the earnings figures, which came with an optimistic outlook for the current financial quarter.
SAN FRANCISCO – Microsoft's report on the quarter late Tuesday will also be a report card on CEO Satya Nadella's efforts to retool the storied company for a new technological era. The Redmond, Wash-based company, which reveals its fiscal fourth-quarter results after the bell, is expected to report adjusted earnings per share of 58 cents on 22.1 billion in revenue, according to analyst estimates provided by S&P Global Market Intelligence. Under Nadella, who took over from Steve Ballmer in February 2014, Microsoft has pivoted away from its software licensing model and towards a cloud- and mobile-first strategy that has sent the stock up 30% in two years to 53. But while most analysts remain upbeat about Microsoft's prospects, doubt about the company's ability to reestablish itself as a dominant force has crept in on the heels of third-quarter results that included a 6% decline in revenue to 20.5 billion. "The last quarter was viewed as disappointing and indicative of the issues Microsoft is facing," says Scott Kessler with S&P Global Market Intelligence, pointing to the shrinking PC market, fierce competition in the enterprise cloud space and its poor showing in the smartphone market.
If you care about money, the economy and corporate America, earnings season matters. SAN FRANCISCO -- Microsoft continued its slow and steady pivot away from its legacy software business, getting a year-end boost from sales in cloud services and its recent purchase of LinkedIn. The Redmond, Wash-based tech giant reported adjusted earnings of per share of 83 cents on adjusted revenue of $26.1 billion Thursday. Analysts had predicted 79 cents and $25.2 billion, according to S&P Global Intelligence. Microsoft shares (MSFT) shares rose 1% after hours.
Microsoft Monday is a weekly column that focuses on updates in regards to the Redmond giant. This week, Microsoft Monday includes details about how Microsoft is handling the "extreme vetting" order, the Q2 FY17 earnings results, Satya Nadella joining the Starbucks board of directors, the addition of the Defenders Security Center feature in the Windows 10 Creators update, how HoloLens will assist in construction projects and more! When President Donald Trump signed the executive order for "extreme vetting" and blocked citizens with visas and green cards from reentering the United States from seven Middle-Eastern countries, Microsoft decided to offer assistant to its employees that were affected. "We share the concerns about the impact of the executive order on our employees from the listed countries, all of whom have been in the United States lawfully, and we're actively working with them to provide legal advice and assistance," said a Microsoft spokesperson via BusinessInsider. In Microsoft's recently quarterly earnings report, BusinessInsider also pointed out that the Redmond giant warned that it was "limited" in its ability to recruit internationally due to "restrictive domestic immigration laws."
Microsoft CEO Satya Nadella, shown here at the company's shareholder meeting in December 2015. SAN FRANCISCO - Microsoft wrapped its fiscal year with a solid financial performance anchored to its rebirth as a cloud-first company while continuing to grapple with a stagnant PC market and withering phone business. Microsoft's reported revenue of 20.6 billion for its fiscal year fourth quarter Tuesday, along with an estimate-beating 69 cents earnings per share. Adjusted for Windows 10 revenue deferrals, Microsoft's revenue was 22.6 billion. The Redmond, Wash-based company was expected to report adjusted earnings per share of 58 cents on 22.1 billion in revenue, according to analyst estimates provided by S&P Global Market Intelligence.