FY18 Q1 - Intelligent Cloud Performance - Investor Relations - Microsoft

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Earnings Release FY18 Q1

NarrativePower BI

Intelligent Cloud

Revenue increased $825 million or 14%, primarily due to higher revenue from server products and cloud services.

• Server products and cloud services revenue increased $807 million or 17%, driven by Azure revenue growth of 90% and server products licensed on-premises revenue growth of 2%.

• Enterprise Services revenue increased 1%, driven by higher revenue from Premier Support Services, offset in part by a decline in revenue from custom support agreements.

Operating income increased $360 million or 20%, primarily due to higher gross margin, offset in part by higher operating expenses.

• Gross margin increased $434 million or 10%, driven by growth in server products and cloud services revenue and cloud services scale and efficiencies. Gross margin percentage decreased due to an increased mix of cloud offerings and lower Enterprise Services gross margin percentage, offset in part by improvement in Azure gross margin percentage.

• Operating expenses increased $74 million or 3%, driven by investments in commercial sales capacity and cloud engineering.

IMPORTANT NOTICE TO USERS (summary only, click here  for full text of notice); All information is unaudited unless otherwise noted or accompanied by an audit opinion and is subject to the more comprehensive information contained in our SEC reports and filings. We do not endorse third-party information. All information speaks as of the last fiscal quarter or year for which we have filed a Form 10-K or 10-Q, or for historical information the date or period expressly indicated in or with such information. We undertake no duty to update the information. Forward-looking statements are subject to risks and uncertainties described in our  Forms 10-Q and 10-K.

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Information contained in these documents is current as of the earnings date, and not restated for new accounting standards

FY18 Earnings Release Schedule

  • Q2-Wednesday, January 31
  • Q3-Thursday, April 26
  • Q4-Thursday, July 19

Microsoft Corp (MSFT)

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2018 ANNUAL REPORT