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Microsoft

FY18 Q4: Cloud business continues to fuel Microsoft’s revenue growth

Microsoft’s revenue

For the fourth quarter FY18, Microsoft has posted a revenue of $30.1 billion, up 17% from a year ago. The latest earning report clearly shows company’s irresistible momentum.

Microsoft’s net income was $8.9 billion, or $1.14 per share, beating the analysts’ expectations who forecasted earnings per share of $1.08 on revenue of $29.2 billion.

“We had an incredible year, surpassing $100 billion in revenue as a result of our teams’ relentless focus on customer success and the trust customers are placing in Microsoft,” said Satya Nadella, chief executive officer of Microsoft.

“Our early investments in the intelligent cloud and intelligent edge are paying off, and we will continue to expand our reach in large and growing markets with differentiated innovation.”

The cloud business of Microsoft continues to fuel the company’s growth. Intelligent Cloud Division of Microsoft generated revenue of $9.6 billion, with Azure revenue witnessing 89% growth. This division includes Azure cloud, server products and other cloud services.

Whereas, the revenue of Office commercial products and cloud services increased by 10%, with Office 365 commercial revenue witnessing 38% growth.

“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.

Adding to company’s growth, both the gaming and Surface businesses are also up this quarter. The gaming revenue increased 39% with Xbox software and services growing revenue by 36%. The Surface revenue was up 25%, majorly driven strong performance of Surface latest editions.

Microsoft’s full year fiscal 2018 revenue crossed 100-billion mark to reach $110.4 billion, up 14% compared to last fiscal year.

Also read: Know why Microsoft is planning to invest $5 billion in IoT in next four years

The company pleased the shareholders by returning $5.3 billion in the form of dividends and share purchases during the fourth quarter.

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