As the earnings season is upon us, companies are reporting their quarterly earnings to Wall Street, and Microsoft is one of the bigger ones. On Thursday, the company announced strong first quarter results for FY 2016.
The company came out after the bell on Thursday, and announced their first quarter numbers. Microsoft was able to generate over $20 billion in revenue, have $5.8 billion in operating income, $4.6 billion in net income, and $0.57 earnings per share.
Commercial & Cloud Revenues Grow
Microsoft announced that their office commercial products and cloud services grew 5% and Office 365 revenue went up 70%. Additionally, the companies Office 365 saw subscribers grow to 18.2 million, with 3 million new ones in the past quarter.
Dynamics also grew over 12% in revenue for the past quarter. Server products and cloud services grew 13%, which was another double-digit growth. Azure revenue doubled year-over-year, and enterprise mobility grew to over 200k customers.
Consumer Business Staggers
With the consumer side of business, Microsoft saw Windows OEM revenue decline 6 percent, but Windows 10 helped to spur PC ecosystem innovation, and saw premium devices sell as well, all good things for the PC business.
Microsoft did see the phone revenue drop 54 percent in currency, as the company is moving the phone system in a drastic way. Search advertising revenue grew 29 percent, and Xbox Live grew 28% to over 39 million users.
This past quarter was great for Microsoft. A strong cloud and strong commercial business still makes Microsoft a company to watch.