Microsoft’s strong cloud execution drives its first quarter results for 2016

3 min. read

Published onOctober 22, 2015

published onOctober 22, 2015

Share this article

Read our disclosure page to find out how can you help Windows Report sustain the editorial teamRead more

Microsoft announced its first quarter earnings for fiscal year 2016(ending September 30, 2015) today, and the results help paint a clear picture of the company’s future. As Windows licensing revenue declines, Surface sales stagnate, and the company’s smartphone phones continue a free fall, it’s the cloud that is helping Microsoft maintain its profits.Microsoft reported first-quarter earnings of $4.6 billion on revenue of $20.4 billion. Unfortunately, Wall Street would have rather seen an increase up to 59 cents a share on revenue of $21.03 billion, Microsoft instead posted 57 cents a share on $20.4 billion due to a Windows 10 revenue deferral. Without the deferral, Microsoft’s Non-GAAP earnings were 67 cents a share on $21.66 billion.But enough with the dollars and cents, here is the full breakdown of how Microsoft’s transition to the cloud is doing.Revenue in Productivity and Business Processes declined 3% (up 4% in constant currency) to $6.3 billion, with the following business highlights:

Revenue in Intelligent Cloud grew 8% (up 14% in constant currency) to $5.9 billion, with the following business highlights:

Revenue in More Personal Computing declined 17% (down 13% in constant currency) to $9.4 billion, with the following business highlights:

It is clear for now that Microsoft’s reinvigorated push into business and cloud platforms sees gains, while its legacy of Windows, is becoming less of reliance for the company.Keep it here as we continue to comb through the numbers to help get a better understanding of what can expect from Microsoft in the near future.

Kareem Anderson

Networking & Security Specialist

Kareem is a journalist from the bay area, now living in Florida. His passion for technology and content creation drives are unmatched, driving him to create well-researched articles and incredible YouTube videos.

He is always on the lookout for everything new about Microsoft, focusing on making easy-to-understand content and breaking down complex topics related to networking, Azure, cloud computing, and security.

User forum

0 messages

Sort by:LatestOldestMost Votes

Comment*

Name*

Email*

Commenting as.Not you?

Save information for future comments

Comment

Kareem Anderson

Networking & Security Specialist

He is a journalist from the bay area, now living in Florida. He breaks down complex topics related to networking, Azure, cloud computing, and security

With KB5043178 to Release Preview Channel, Microsoft advises Windows 11 users to plug in when the battery is low#

Copilot in Outlook will generate personalized themes for you to customize the app#

Microsoft will raise the price of its 365 Suite to include AI capabilities#

Death Stranding Director’s Cut is now Xbox X|S at a huge discount#

Outlook will let users create custom account icons so they can tell their accounts apart easier#

Microsoft’s strong cloud execution drives its first quarter results for 2016#

With KB5043178 to Release Preview Channel, Microsoft advises Windows 11 users to plug in when the battery is low

Copilot in Outlook will generate personalized themes for you to customize the app

Microsoft will raise the price of its 365 Suite to include AI capabilities

Death Stranding Director’s Cut is now Xbox X|S at a huge discount

Outlook will let users create custom account icons so they can tell their accounts apart easier

Microsoft’s strong cloud execution drives its first quarter results for 2016