Microsoft's Cloud Business Boosts Earnings
Expectations were high going into Microsoft's (NASDAQ: MSFT) earnings report. The company has stubbornly clung to its $1 trillion market cap, a watermark it achieved earlier this year. Microsoft has consistently gained market share in the competitive cloud computing arena, which has helped drive its stock up nearly 40% in 2019.
Microsoft once again cited its cloud business as a significant contributor to its success this quarter. For the fiscal 2020 first quarter (which ended Sept. 30), the tech giant reported revenue of $33.1 billion, up 14% year over year, sailing past the high end of management's guidance, which topped out at $32.4 billion. The results also surpassed analysts' consensus estimates of $32.4 billion. Operating income grew by 27% to $12.7 billion. This resulted in diluted earnings per share of $1.38, which climbed 21%, easily surpassing expectations of $1.24.
Image source: Microsoft.
Source Fool.com
