Microsoft Q1 2018 Earnings Release: Revenue exceeds market expectations, handily

Microsoft has released the following results for the quarter ended September 30, 2017:

• Revenue was $24.5 billion and increased 12%
• Operating income was $7.7 billion and increased 15%
• Net income was $6.6 billion and increased 16%
• Diluted earnings per share was $0.84 and increased 17%

For the fourth consecutive quarter, CEO Satya Nadella credits commercial cloud.  "This quarter we exceeded $20 billion in commercial cloud ARR, outpacing the goal we set just over two years ago," he said in a press release.

The company also beat analyst expectations fairly handily, with:

• Adjusted earnings $0.84 versus $0.72 expected.
• Revenue of $24.5 billion versus $23.56 billion expected.

Productivity and Business Processes - Revenue and Operating Income | Source

Revenue in Productivity and Business Processes was $8.2 billion and increased 28% (up 28% in constant currency), with these highlights:

• Dynamics products and cloud services revenue increased 13% (up 12% in constant currency) driven by Dynamics 365 revenue growth of 69% (up 69% in constant currency). Quite a boost quarter-to-quarter; Q4 2017 revenue growth increased by 7%.
• LinkedIn contributed revenue of $1.1 billion during the quarter, remaining perfectly level quarter-to-quarter
• Office commercial products and cloud services revenue increased 10% (up 10% in constant currency) driven once again by Office 365 commercial revenue growth of 42% (up 42% in constant currency)
• Office consumer products and cloud services revenue increased 12% (up 10% in constant currency) and Office 365 consumer subscribers increased to 28.0 million

Revenue ...