Summary
Microsoft Corporation's (MSFT) second-quarter fiscal year 2019 results, filed on January 29, 2019, for the period ending December 30, 2018, demonstrate continued growth across its key business segments. Investors will note the company's focus on its cloud offerings, particularly Azure, which continues to be a significant driver of revenue expansion. The report details financial performance, including income statements, balance sheets, and cash flow statements, providing a snapshot of the company's financial health and operational efficiency during the quarter.
Financial Highlights
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Financial Statements
Beta
| Revenue | $32.47B |
| Cost of Revenue | $12.42B |
| Gross Profit | $20.05B |
| R&D Expenses | $4.07B |
| Operating Income | $10.26B |
| Interest Expense | $672.00M |
| Net Income | $8.42B |
| EPS (Basic) | $1.09 |
| EPS (Diluted) | $1.08 |
| Shares Outstanding (Basic) | 7.69B |
| Shares Outstanding (Diluted) | 7.77B |
Key Highlights
- 1Revenue growth driven by intelligent cloud and productivity and business processes segments.
- 2Continued strong performance in Office 365 subscriptions and Dynamics 365.
- 3Significant expansion of Azure revenue, indicating robust cloud adoption.
- 4Healthy operating cash flow generation, underscoring financial strength.
- 5Commitment to returning capital to shareholders through share repurchases and dividends.
- 6Management's discussion highlights strategic focus on digital transformation and AI.
Frequently Asked Questions
Revenue growth was primarily driven by Microsoft's Intelligent Cloud segment, particularly Azure, and the Productivity and Business Processes segment, fueled by strong adoption of Office 365 commercial and Dynamics 365.
Microsoft's cloud business, especially Azure, showed robust growth. The 'intelligent cloud' segment, which includes Azure and server products, saw substantial revenue increases, reflecting strong demand for cloud services.
The balance sheet indicates a strong financial position with healthy liquidity. The company also generated significant operating cash flow, demonstrating its ability to fund operations and investments.
While this filing primarily focuses on financial performance and operational results, Item 1A (Risk Factors) and Item 2 (Legal Proceedings) would contain details on any significant risks or ongoing legal matters. Investors should review these sections for a complete understanding.