Original title: Microsoft sales, profit top estimates on cloud; azure falls
Netease technology news, October 24 news, Microsoft announced the financial statements for the first fiscal quarter of 2020 (July 1 to June 30 of the next year) as of September 30. According to the financial report, Microsoft's revenue in the quarter was 33.1 billion US dollars, up 14% year-on-year; its profit was 10.7 billion US dollars, up 21% year-on-year, or 1.38 US dollars per share. Microsoft's quarterly revenue and profit exceeded analysts' expectations, mainly due to the increased market demand for azure cloud computing programs and Internet based office software.
Among them, the revenue of Intelligent Cloud business reached US $10.85 billion, a year-on-year increase of 27%; the revenue of other personal computing business reached US $11.13 billion, a year-on-year increase of 3.6%; the revenue of productivity and business process business reached US $11.08 billion, a year-on-year increase of 13%.
Microsoft CEO Satya<#comment>#comment>Financial season<#comment>#comment>64%. As growth slows, the company is trying to improve profit margins and secure large, stable deals for azure. Azure's competitor is Amazon's cloud service AWS. Microsoft's other major cloud business, office 365 for corporate customers, saw sales jump 25%.
Daniel, Senior Portfolio Manager, SynovusTrust, Investment Trust. <#comment>#comment>Fiscal season<#comment>#comment>The PC market has also performed better than expected.
After the report was released, Microsoft's share price remained unchanged in after hours trading and closed at $137.24 on the same day. The stock rose 3.8% in the quarter, while the standard & Poor's 500 index rose 1.2% over the same period.
The company's share price has soared this year due to market optimism about the cloud business. As U.S. and European regulators step up scrutiny of other large technology companies, such as Google, Amazon and Facebook, some investors see investing in Microsoft as a safer option, which has also boosted Microsoft's share price. Microsoft's market value exceeded $1 trillion in April and rose to that level again in June. Earlier this month, apple replaced Microsoft as the most valuable public company in the United States.
Microsoft said business cloud revenue rose 36 per cent to $11.6 billion in the quarter. The company pointed out that
Amy, Chief Financial Officer of Microsoft
Hood pointed out that the company will continue to invest in the construction of data centers to meet customers' strong interest and needs for Azure.
Morgan Stanley analyst Keath
Morgan of Synovus says:
Sales of Windows systems for PC makers rose 9%, while surface revenue fell 4%, in part due to the launch of new models during the holiday shopping season after the end of the first quarter. LinkedIn revenue increased by 25% and game revenue decreased by 7%.
Microsoft still generates more than 15% of its revenue from windows, a business that still relies heavily on the company's PC replacement cycle. Market research firm Gartner said earlier this month that global PC shipments rose 1.1% in the quarter as companies upgraded to the latest Windows operating system. Microsoft will end its support for Windows 7 in January next year, which means that if companies want to continue to receive updates and services through their systems, they need to upgrade to windows 10.
The expiration of the older version of the operating system also helped boost sales of Microsoft's Microsoft 365 suite, including office cloud software such as word, Excel and teams, which is also Microsoft's competitive product with slack technologies. (Chen Chen)