What you need to know
- Microsoft reported $33.1 billion in revenue for the first quarter of its 2020 fiscal year
- That's up 14 percent year-over-year, largerly boosted by its cloud and commercial businesses.
- Surface and gaming revenues were down for the quarter.
Microsoft issued its first quarter earnings report for its 2020 fiscal year today, reporting overall revenues of $33.1 billion. That's up 14 percent over the same period last year, during which the company reported revenues of $29.1 billion.
The upswing was, once again, largely powered by a strong cloud and commercial business, as has become a trend for Microsoft in recent years. Specifically, revenues in Microsoft's Intelligent Cloud business were up 27 percent to $10.8 billion, while Productivity and Business processes increase 13 percent to $11.1 billion. The former covers Microsoft's server and enterprise services, while the latter encompasses Office products and cloud services, as well as LinkedIn and Dynamics.
Overall, Microsoft's More Personal Computing category, which covers gaming, Windows, and Surface revenue, saw a bump of four percent to $11.1 billion. That's largely due to a solid quarter for Windows OEM revenue, Windows cloud services and commercial products, and search revenue.
There were a couple of weak point for the quarter, however. Surface revenues dipped four percent as Microsoft moved into its transition period ahead of the launch of Surface Pro 7 and Surface Laptop 3. It will be interesting to see if their launch, as well as the upcoming launch of the Surface Pro X, will give a significant boost to Microsoft's Q2 results.
Likewise, gaming revenues were down by seven percent. In its guidance last quarter, Microsoft said it expected this downturn as console sales continued to decline. Xbox content and services revenue remained flat year-over-year, however.
Microsoft will hold a conference call at 5:30 p.m. ET, where it will discuss each business segment in more depth.
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