Microsoft Corporation (NASDAQ:MSFT) stock rose 4.22% after hours yesterday, as it posted earnings beats in its Q2 results.
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According to thebroadband, Microsoft has told analysts to expect a similar drop in revenue in the coming quarter.
Intelligent Cloud revenue grew to $6.3 billion, up 5% in GAAP terms or 11% in constant currency.
Shares were up more than three per cent to United States dollars 53.64 in after-market trade, with analysts rejecting the notion that Microsoft was somehow past its sell-by date. Surface revenue jumped 29% in constant currency, driven by the launch of two new tablets, the Surface Pro 4 and Surface Book.
Revenue from the “intelligent cloud” business, which includes products such as its Azure cloud infrastructure and services business, along with other noncloud products such as traditional servers, rose 5% to $6.3bn.
Office 365, the company’s subscription-based productivity service also saw a revenue growth of 70%, with subscribers increasing to more than 20 million.
Sales in the “More Personal Computing” group were down 5%, and would have been down 2% in constant-currency terms.
Microsoft’s revenue from personal computing, which includes the Windows business, fell 5% in the quarter to $12.7bn. It is now on track for $9.4 billion in annual revenue $9.4 billion, up from $8.2 billion it estimated in the previous quarter.
In addition to the decreased interest in Windows, the slight fall in revenue has been attributed to shifts in currency, but the company is understandably pleased with the figures.
For the quarter ended December 31, Microsoft reported adjusted earnings per share of 78 cents on revenue of $25.69 billion.
“Businesses are also piloting Windows 10, which will drive deployments beyond 200m active devices”.
Microsoft is still making a lot of money, but the company is doing with Surface, Windows 10 and its cloud platform, and definitely not Windows phones. However, Microsoft continues to obscure its real cloud revenues.
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Xbox Live monthly active users grew 30 percent to 48 million. The phone revenue declined 49 percent during the quarter because of what Microsoft calls “our strategy change announced in July 2015”.
