shares fell into trading late Tuesday after the software giant released better-than-expected results for its latest quarter. Apparently Wall Street was expecting an even bigger beat.
For the fiscal fourth quarter ended June 30, Microsoft posted revenue of $46.2 billion, up 21% from a year ago and ahead of analysts’ forecast of $44.1 billion. Earnings were $2.17 per share, beating the Wall Street consensus of $1.90 per share.
Microsoft exceeded its own guidelines in all three of its operating segments.
Productivity and business processes, including Office, had revenue of $14.7 billion, up 25%, or 21% in constant currency, above the projected range of $13.8 billion to $14.05 billion.
Intelligent Cloud revenue, including Azure, was $17.4 billion, up 30%, or 26% in constant currency, surpassing the $16.2 billion target to $16.45 billion.
Revenue for the More Personal Computing segment, which includes Windows, Xbox and Surface, was $14.1 billion, up 9% or 6% in constant currency, above the $13.6 billion forecast margin to $14. billion lag.
Azure, the company’s public cloud arm, revenue was 51% higher than a year ago, or 45% in constant currency. (The company does not provide a dollar figure for Azure revenue.)
Meanwhile, LinkedIn revenue grew 46%, a 4% decrease for Xbox content and services, a 53% increase for Search advertising excluding traffic fetching fees, a 20% increase for commercial Office services. products and a 25% increase for Office 365. Server products and services were up 34%.
“Our results show that when we perform well and meet customer needs in differentiated ways in large and growing markets, we generate growth, as we’ve seen in our commercial cloud – and in new franchises we’ve built, including gaming , security, and LinkedIn, all of which have generated more than $10 billion in annual revenue in the past three years,” Microsoft CEO Satya Nadella said in a statement.
CFO Amy Hood added in a statement that the company saw 30% year-over-year growth in commercial bookings, with 36% growth in commercial cloud revenue, to $19.5 billion.
The company bought back $7.2 billion in shares in the quarter.
Microsoft shares are down 2.6% in late trading.
Write to Eric J. Savitz at firstname.lastname@example.org