Jan 31, 2018

Continued cloud growth helps Microsoft again beat expectations

Microsoft CEO Satya Nadella (Photo: Microsoft)

Buoyed by Azure and Office 365, Microsoft reported sales and earnings ahead of what Wall Street was expecting.

Why it matters: The cloud has been Microsoft's growth engine for the past couple of years even as the PC market has been in decline.

Excluding a large one-time tax-related charge and other items, Microsoft said it earned $7.5 billion, or 96 cents per share, on revenue of $28.9 billion. Analysts were expecting per-share earnings of 86 cents per share, on revenue of about $28.3 billion, according to Zacks.

Other highlights:

  • Revenue in the productivity unit that includes Office was $9 billion, up 25%
  • Revenue in the "intelligent cloud" unit was $7.8 billion, up 15%
  • Revenue in the "more personal computing" unit that includes Windows was 12.2 billion, up 2%
  • LinkedIn accounted for $1.3 billion of Microsoft's revenue
  • LinkedIn had an operating loss of $265 million, wider than a year ago, but less than it had in the prior quarter
  • Search advertising revenue excluding traffic acquisition costs increased 15%
  • Revenue from Microsoft Surface was up 1%

Go deeper

The Humanity First push for a coronavirus vaccine

Illustration: Aïda Amer/Axios

Policy responses to the global coronavirus crisis have been every-country-for-itself and — in the case of the U.S. and China — tinged with geopolitics.

The flipside: The scientific work underway to understand the virus and develop a vaccine has been globalized on an unprecedented scale.

Go deeperArrow6 mins ago - World

Trump attacks Schumer for impeachment in letter about coronavirus crisis

President Trump briefs reports on April 2. Photo: Win McNamee/Getty Images

President Trump accused Senate Minority Leader Chuck Schumer of being "missing in action" during the coronavirus crisis, writing in a scathing letter on Thursday that Schumer's focus on the "ridiculous impeachment hoax" resulted in New York being ill-prepared for the pandemic.

Why it matters: It's a blistering response to Schumer urging Trump to assign a senior military officer to enforce the Defense Production Act to produce more medical supplies.

World coronavirus updates: Confirmed cases top 1 million

Data: The Center for Systems Science and Engineering at Johns Hopkins, the CDC and China's Health Ministry. Note: China numbers are for the mainland only and U.S. numbers include repatriated citizens and confirmed plus presumptive cases from the CDC

Novel coronavirus infections have hit the 1 million mark after "near exponential growth" that's reached "almost every country," World Health Organization Director-General Tedros Adhanom Ghebreyesus said Thursday.

The big picture: The global death toll exceeded 50,000 on Thursday, per Johns Hopkins data. Italy has reported nearly 14,000 deaths. Governments around the world have introduced public health and economic measures to try and curb the impact of the virus.

Go deeperArrowUpdated 48 mins ago - Health