Summary
Microsoft Corporation (MSFT) reported its financial results for the fiscal quarter ending September 29, 2015. Total revenue for the quarter was $20.38 billion, a decrease of 12% compared to the same period last year, largely impacted by a significant revenue deferral related to the Windows 10 launch and lower revenue from the More Personal Computing segment, particularly phones. However, the Intelligent Cloud segment showed growth, with revenue increasing by 8% driven by server products and services, including Microsoft Azure. Net income for the quarter was $4.62 billion, a slight increase from $4.54 billion in the prior year, resulting in diluted earnings per share of $0.57, up from $0.54. The company continued its robust share repurchase program, demonstrating a commitment to returning capital to shareholders, and maintained a strong liquidity position with over $99 billion in cash, cash equivalents, and short-term investments. Despite the revenue dip, the company highlighted growth in its commercial cloud annualized run rate and a significant increase in Office 365 Consumer subscribers, signaling a strategic shift towards its cloud services.
Financial Highlights
53 data points| Revenue | $20.38B |
| Cost of Revenue | $7.21B |
| Gross Profit | $13.17B |
| R&D Expenses | $2.96B |
| Operating Income | $5.79B |
| Interest Expense | $249.00M |
| Net Income | $4.90B |
| EPS (Basic) | $0.61 |
| EPS (Diluted) | $0.61 |
| Shares Outstanding (Basic) | 8.00B |
| Shares Outstanding (Diluted) | 8.08B |
Key Highlights
- 1Revenue for the quarter declined 12% year-over-year to $20.38 billion, primarily due to lower sales in the More Personal Computing segment and Windows 10 revenue deferrals.
- 2Net income saw a slight increase to $4.62 billion, with diluted earnings per share rising to $0.57 from $0.54 in the prior year.
- 3The Intelligent Cloud segment demonstrated strong performance with an 8% revenue increase, driven by server products and services, including Microsoft Azure.
- 4Office 365 Consumer subscribers grew to 18.2 million, an increase of 3 million in the quarter.
- 5Microsoft Azure revenue and compute usage more than doubled year-over-year.
- 6The company repurchased $4.0 billion of its common stock during the quarter, underscoring its capital return program.
- 7Cash, cash equivalents, and short-term investments remained robust at $99.4 billion, providing significant financial flexibility.