Microsoft Soaring To All Time Highs

Of late, the market has been very pleased with Microsoft (Nasdaq: MSFT) as it delivered stellar results for the fourth quarter. The better than expected outlook for the company helped drive its stock to an all-time high. And, it was not just one segment driving the performance. Microsoft managed to deliver on all grounds. Well done, Mr. Nadella. Many believe that the company is headed to become a trillion dollar giant fairly soon.

Microsoft’s Financials

Microsoft’s Q4 revenues grew 17% over the year to $30.1 billion, ahead of the market’s forecast of $29.21 billion. EPS of $1.14 was also ahead of the Street’s expectations of $1.07 for the quarter.

By segment, Productivity and Business Processes revenues grew 13% to $9.7 billion driven by a 10% growth in Office commercial products and cloud services revenue. Within the segment, Office consumer products and cloud services revenue increased 8% and Office 365 consumer subscribers increased to 31.4 million. LinkedIn revenues grew 37% and Dynamics products and cloud services revenue increased 11% over the year.

Revenue in Intelligent Cloud grew 23% to $9.6 billion with Server products and cloud services revenue growing 26% and Enterprise Services revenue increasing 8%. Azure revenues were up 89% over the year.

Revenue in More Personal Computing segment increased 17% to $10.8 billion with Windows OEM revenues growing 7% and Windows commercial products and cloud services revenue increasing 23% over the year. Gaming revenues increased 39% and Surface revenue increased 25%.

Microsoft ended the year with revenues growing 14% to $110.4 billion and a net income of $16.6 billion on a GAAP basis. On a Non-GAAP basis, income came in at $30.3 billion or $3.88 per share. This was the first time ever that Microsoft crossed the $100 billion annual revenue threshold.

During the quarter, Microsoft returned $5.3 billion to shareholders in the form of dividends and share repurchases.

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