Microsoft Q4 2018 earnings anchored by commercial cloud revenue growth

July 19 2018

Microsoft announced Q4 revenue of $30.1 billion and net income of $8.9 billion or $1.14 per share, up 10% year over year, to close out their fiscal 2018.

Cloud services showed the highest revenue growth, including Office 365, Azure, LinkedIn, and Dynamics 365.

Revenue in the Productivity and Business Process group, which includes Dynamics, Office, and LinkedIn, was $9.7 billion, up 13% year-over-year. Dynamics 365 revenue growth of 61% (up 56% in constant currency) helped drive an overall 11% increase (an 8% increase of last year) in Dynamics products and cloud services revenue.

Office 365 commercial revenue grew 38%, with Office commercial products and cloud services revenue up 10%. LinkedIn revenue increased 37%.

Azure revenue growth of 89% led the Intelligent Cloud group, which includes Server products and enterprise services to $9.6 billion in revenue overall, up 23%. Azure revenue grew at 97% in Q4 2017.

"Exceptional sales execution delivered double-digit revenue growth across all segments and strong progress against our strategic priorities, anchored by commercial cloud revenue growing 53% year-over-year to $6.9 billion," said Amy Hood, executive vice president and chief financial officer of Microsoft. 

For the fiscal year ended June 30, 2018, as compared to the corresponding period of last fiscal year, the company reported:

  • Revenue was $110.4 billion and increased 14%
  • Operating income was $35.1 billion and increased 21%
  • Net income was $16.6 billion GAAP and $30.3 billion non-GAAP
  • Diluted earnings per share was $2.13 GAAP and $3.88 non-GAAP
  • GAAP results include a $13.7 billion net charge related to TCJA

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