Image Courtesy: Microsoft.com

Today, Microsoft (Nasdaq “MSFT” @Microsoft) releases its fourth quarter earnings for fiscal year 2016 ending June 30, 2016. The results are:
Revenue $20.6 billion GAAP, and $22.6 billion non-GAAP
Net income of $3.1 billion GAAP, and $5.5 billion non-GAAP
Earnings per share was $0.69 non-GAAP, and $0.39 GAAP

The software giant sees positive results from its cloud business including Azure. Here are the highlights:

Revenue in Intelligent Cloud grew 7% (up 10% in constant currency) to $6.7 billion, with the following business highlights:

  • Server products and cloud services revenue increased 5% (up 8% in constant currency) driven by double-digit annuity revenue growth
  • Azure revenue grew 102% (up 108% in constant currency) with Azure compute usage more than doubling year-over-year
  • Enterprise Mobility customers nearly doubled year-over-year to over 33,000, and the installed base grew nearly 2.5x year-over-year

Intelligent Cloud

Intelligent Cloud revenue increased $415 million or 7%, mainly due to higher revenue from server products and cloud services and Enterprise Services. Revenue included an unfavorable foreign currency impact of approximately 3%.

  • Server products and cloud services revenue grew $253 million or 5%, driven by Azure revenue growth of 102%. Revenue included an unfavorable foreign currency impact of approximately 3%.
  • Enterprise Services revenue grew $159 million or 12%, driven by growth in Premier Support Services. Revenue included an unfavorable foreign currency impact of approximately 2%.

Intelligent Cloud operating income decreased $443 million or 17%, primarily due to higher operating expenses. Operating expenses increased $471 million or 22%, mainly due to higher research and development expenses and sales and marketing expenses, driven by strategic investments and acquisitions to drive cloud sales capacity and innovation. Gross margin increased slightly, mainly due to higher revenue, offset in part by higher cost of revenue, driven by an increased mix of cloud offerings. Gross margin included an unfavorable foreign currency impact of approximately 4%.

Read the full report here

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Edward

Mabuhay! Hi I'm Edward from the Philippines. I write about Microsoft, Windows 10, Windows 10 Mobile, and Xbox. News tips, comments, or feedbacks are welcome at Edward@windowslatest.com.