Bekker's Blog

Blog archive

Microsoft Earnings Up 13% in Q4

Microsoft revenues were up 13% in the fourth quarter as the company continued its growth amid the pandemic and associated economic headwinds.

Revenues for the quarter, ended June 30, hit $38 billion. Diluted earnings per share decreased 15%, to $1.46, in part because the company took a $450 million charge in the quarter for its late-June move to permanently shutter the Microsoft Store physical locations.

Microsoft's stock price was down about 3% in after-hours trading, even though both the revenues and earnings announced Wednesday beat analyst expectations.

"Our commercial cloud surpassed $50 billion in annual revenue for the first time this year. And this quarter our Commercial bookings were better than expected, growing 12% year-over-year," Microsoft CFO Amy Hood said in a statement.

For the full year, revenue grew 14% to $143 billion and diluted earnings per share were also up 14% to $5.76.

Despite the cloud growth, investors may have been concerned about the sequential drop in Azure growth. While Microsoft does not break out Azure revenues, the company reports percentage growth. In the third quarter, Azure growth had been 59%, while the fourth quarter brought 47% growth.

By major business units for the quarter, Productivity and Business Process was up 6% to $11.8 billion, Intelligent Cloud was up 17% to $13.4 billion and More Personal Computing was up 14% to $12.9 billion.

Other notable growth trends in Microsoft's business-oriented product lines included:

  • A 19% jump in Office 365 Commercial revenues
  • Growth of 38% for Dynamics 365 revenue
  • An increase of 19% in server products and cloud services revenue, which included the 47% Azure revenue growth
  • Growth of 7% in Windows OEM revenue
  • A 28% hike in Surface revenues

Posted by Scott Bekker on July 22, 2020 at 3:31 PM


Featured

  • Windows Autopilot for HoloLens 2 Hits Preview

    Windows Autopilot, Microsoft's PC self-provisioning program, is now being tested for use with the company's mixed-reality headset, the HoloLens 2.

  • Signs Point to Microsoft Charging for Use of APIs

    There are indications that Microsoft is mulling charging customers for software that uses its application programming interfaces.

  • The 2020 Microsoft Product Roadmap

    From the next major update to Windows 10 to the next generations of .NET and PowerShell, here's what's on tap from Microsoft this year.

  • Microsoft Extends Azure Hybrid Benefit Licensing to Linux

    Microsoft has expanded its Azure Hybrid Benefit licensing program to include Linux servers, particularly Red Hat Enterprise Linux or SUSE Linux Enterprise servers.