Microsoft released their financial reports for the second financial quarter of 2016, in which it reported a non-GAAP revenue of $25.7 billion and 0.78 of adjusted per-share profit.
This is much better that Wall Street’s previous expectations of an EPS of $0.71 and a revenue of $25.6 billion, and wall street responded well, with stock going up 7 percent after the announcement of the earnings.
In the year-ago quarter, Microsoft announced $26.5 billion in revenue and EPS of $0.71.
Satya Nadella, chief executive officer at Microsoft gave the following statement about the new results:
“Businesses everywhere are using the Microsoft Cloud as their digital platform to drive their ambitious transformation agendas, businesses are also piloting Windows 10, which will drive deployments beyond 200 million active devices.”
And then for the first time they actually broke these down into business units, which looks like the following:
- Productivity and Business Processes (Office, consumer Office and Dynamics) – $6.7 billion compared to $6.3 billion in revenue last quarter.
- Intelligent Cloud – $5.9 billion in the last quarter.
- More Personal Computing (Windows, Devices, Gaming and Search) – $12.7 billion last quarter.
They also revealed that office 365 now has 20.6 million subscribers.
This is generally good news for Microsoft, as although Windows Phone seems to be decreasing, there other businesses look to be increased.