Microsoft Earnings: Despite a Beat, Shares Sag

Microsoft Earnings: Despite a Beat, Shares Sag

In addition, Windows commercial products and cloud services revenue increased 21% (up 17% in constant currency) driven by an increased volume of multi-year agreements and the mix of products that carry higher in-quarter revenue recognition.

Operating income was $8.3 billion and increased 23%.

Azure's growth has propelled Microsoft to the No. 2 position in the US$15.6 billion cloud computing market with a 14 per cent share, behind AWS's 32 per cent, research firm Canalys estimated in February.

Microsoft's Productivity and Business Processes unit, which includes its Office, Dynamics and LinkedIn businesses, saw revenue increase 17% to $9 billion in the quarter. "We are innovating across key growth categories of infrastructure, AI, productivity, and business applications to deliver differentiated value to customers", he added.

Intelligent Cloud made $7.9 billion in revenue, also a 17% (15% CC) growth from previous year.

Microsoft has released its FY18 Q3 earnings report revealing that the sales numbers were well ahead of what the analysts estimated.

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Sane, who joined City in 2016, also described the team as "perfect" and credited their efforts in helping him win the award. Mohammed Benazi, who runs the charity, said: "A number of needy people came knocking on his door for help".

Shares in Microsoft were little changed in after-hours trade despite the stronger-than-expected results.

In the fiscal third quarter Microsoft acquired data storage company Avere and gaming start-up PlayFab, and it announced a major reorganization that included the departure of Windows and Devices chief Terry Myerson from the company. Office 365 commercial products and cloud services revenue grew 12% with Office 365 commercial revenue up 40%.

Wall Street has been modeling for the tech icon to earn 99 cents a share, up 1%, on sales of $27.92 billion, up 20%, in its fiscal fourth quarter.

But Windows remains the main revenue contributor for Microsoft's More Personal Computing business segment. Xbox gaming revenue grew by 24% thanks to third-party games titles.

Microsoft stock is up 10 percent since the beginning of 2018.