Microsoft Cloud service crosses $100 bn revenue for the first time in FY 2018

Microsoft Cloud service crosses $100 bn revenue for the first time in FY 2018

Riding on its growing Intelligent Cloud portfolio and early investments in Intelligent Edge, Microsoft has surpassed $100 billion in revenue for the first time in fiscal year 2018.

For the fourth quarter that ended on June 30, the tech giant reported revenue of $30.1 billion and net income of $8.9 billion.

Revenue has increased 17 percent year over year, and net income is up 35 percent, the company said in a statement late on 19 July.

Microsoft stock jumped over 4 percent in after-hours trading as it beat Wall Street expectations.

“We had an incredible year, surpassing $100 billion in revenue as a result of our teams’ relentless focus on customer success and the trust customers are placing in Microsoft,” said Satya Nadella, CEO, Microsoft.

Microsoft CEO Satya Nadella. Image: Reuters

Microsoft CEO Satya Nadella. Image: Reuters

“Our early investments in the intelligent cloud and intelligent edge are paying off, and we will continue to expand our reach in large and growing markets with differentiated innovation,” he added.

Microsoft returned $5.3 billion to shareholders in the form of dividends and share repurchases in the fourth quarter of fiscal year 2018, an increase of 16 percent compared to the fourth quarter of fiscal year 2017.

“Exceptional sales execution delivered double-digit revenue growth across all segments and strong progress against our strategic priorities, anchored by commercial cloud revenue growing 53 percent year-over-year to $6.9 billion,” said Amy Hood, executive vice president and chief financial officer of Microsoft.

The tech giant this week touched $800 billion valuation for the first time.

Office commercial products and Cloud services revenue increased 10 percent, driven by Office 365 commercial revenue growth of 38 percent.

Revenue in Intelligent Cloud was $9.6 billion and increased 23 percent.

“Office consumer products and cloud services revenue increased 8 percent and Office 365 consumer subscribers increased to 31.4 million,” Microsoft said, adding that LinkedIn revenue increased 37 percent.

Server products and cloud services revenue increased 26 percent driven by Azure revenue growth of 89 percent.

Revenue in Personal Computing was $10.8 billion and increased 17 percent. Gaming revenue increased 39 percent, with Xbox software and services revenue growth of 36 percent.

“Surface notebook revenue increased 25 percent driven by strong performance of the latest editions of Surface against a low prior year comparable,” the company said.

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