FY18 Q1 - Intelligent Cloud Performance - Investor Relations - Microsoft
Browse Prior Earnings Releases:
Earnings Release FY18 Q1
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.
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Information contained in these documents is current as of the earnings date, and not restated for new accounting standards
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Related Information
FY18 Earnings Release Schedule
- Q2-Wednesday, January 31
- Q3-Thursday, April 26
- Q4-Thursday, July 19