=Microsoft (MSFT) reported earnings on Thur 26 Oct 2017 (a/h)

Microsoft beats by $0.12, beats on revs 

• Reports Q1 (Sep) earnings of $0.84 per share, $0.12 better than the Capital IQ Consensus of $0.72; revenues rose 11.7% year/year to $24.5 bln vs the $23.57 bln Capital IQ Consensus.
• Revenue in Productivity and Business Processes was $8.2 billion and increased 28% (up 28% in constant currency), with the following business highlights:
  • Office commercial products and cloud services revenue increased 10% (up 10% in constant currency) driven by Office 365 commercial revenue growth of 42% (up 42% in constant currency)
  • Office consumer products and cloud services revenue increased 12% (up 10% in constant currency) and Office 365 consumer subscribers increased to 28.0 millio
  • Dynamics products and cloud services revenue increased 13% (up 12% in constant currency) driven by Dynamics 365 revenue growth of 69% (up 69% in constant currency)
  • LinkedIn contributed revenue of $1.1 billion during the quarter
• Revenue in Intelligent Cloud was $6.9 billion and increased 14% (up 13% in constant currency), with the following business highlights:
  • Server products and cloud services revenue increased 17% (up 17% in constant currency) driven by Azure revenue growth of 90% (up 89% in constant currency)
  • Enterprise Services revenue increased 1% (0% in constant currency) with growth in Premier Support Services offset by declines in custom support agreements
• Revenue in More Personal Computing was $9.4 billion and relatively unchanged (down 1% in constant currency), with the following business highlights:
  • Windows OEM revenue increased 4% (up 4% in constant currency), ahead of the overall PC market
  • Windows commercial products and cloud services revenue increased 7% (up 6% in constant currency) driven by annuity revenue growth
  • Search advertising revenue excluding traffic acquisition costs increased 15% (up 15% in constant currency) driven by higher revenue per search and search volume
  • Surface revenue increased 12% (up 11% in constant currency) driven by sales of the new Surface Laptop
  • Gaming revenue increased 1% (0% in constant currency) with Xbox software and services revenue growth of 21% (up 20% in constant currency) offset by lower hardware revenue