Share this article
Latest news
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 post FY20 Q2 earnings with Personal Computing sector beating cloud revenue for the quarter
3 min. read
Published onJanuary 29, 2020
published onJanuary 29, 2020
Share this article
Read our disclosure page to find out how can you help Windows Report sustain the editorial teamRead more
In this article
Toggle
Microsoft just posted its FY20 Q2 earnings and the company, by most accounts, exceeded expectations on a myriad of fronts.
Wementioned earlier today, that the street expectations had the company posting an ESP of $1.32, but Microsoft managed to rouse a $1.51 for the quarter as well beating expected revenue gains of $35.6 billion, hauling in $36.9 billion for its Q1.
According toMicrosoft’s press release for its earnings, the company “returned $7.9 billion to shareholders in the form of dividends and share repurchases in the first quarter of the fiscal year 2020, an increase of 28% compared to the first quarter of the fiscal year 2019.”
Office Commercial Products
Revenue in Productivity and Business Processes was $11.8 billion and increased 17% (up 19% in constant currency), with the following business highlights:
Intelligent Cloud
Revenue in Intelligent Cloud was $11.9 billion and increased 27% (up 28% in constant currency), with the following business highlights:
More Personal Computing
Revenue in More Personal Computing was $13.2 billion and increased 2% (up 3% in constant currency), with the following business highlights:
Breaking down the numbers we see that of the $36.9 billion revenue total, Microsoft’s Windows division was able to contribute a bit more significantly this quarter than in prior, thanks to a strong PC market and its self-imposed end-of-life cycle for Windows 7.
The numbers coming out of the Surface division were also very strong and are cresting at a $2 billion business, marking an almost first for the flagship hardware line.
As expected, Microsoft’s Xbox gaming business slumped for the quarter with no new exclusives or accessories to drive console purchases.
The market for additional Game Pass subscriptions is meeting saturation levels. However, Microsoft credits the game Fortnite with its lackluster performance in the three month period.
The famed battle royale shooter performed exceptionally well the prior year and artificially raised Microsoft’s content and services numbers due to the amount of loot purchased through its marketplace for the game.
On the whole, Microsoft had one of its best quarters to date and the company is poised to make similar gains in the coming ones.
It’ll be interesting to see how Microsoft’s 2020 investments in xCloud, the untested market of dual-screen hardware in the Neo and Duo, as well as its cloud initiatives such as partnerships with Salesforce and the Department of Defense, effect its YoY.
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
Δ
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
