What You Need to Know About Microsoft Earnings Report
Microsoft Corp. said Thursday it earned $1.05 billion in real-money sales for the third quarter, bringing its earnings total to $974.7 million for the year, as the world’s largest software company added 4.6 million full-time jobs and its market value rose nearly 14% to $76.8 billion.
Microsoft’s net income rose to $18.4 billion, or $1,890 per diluted share, in the third-quarter, compared with a loss of $1 billion, the company said in a statement.
Earnings for the same period last year were $964.2 million, according to Thomson Reuters I/B/E/S.
Shares rose 2% to close at $86.19.
The Nasdaq composite closed up 0.9% at 1,079.15.
Microsoft said its gross margin climbed to 25.4% from 20.3% last year.
Sales were up 8.5% to 2.7 billion, and revenue rose 15% to 6.1 trillion.
The company reported a profit of $3.6 billion, down from a profit increase of $6.1 billion last year, which was due to better-than-expected holiday sales.
Revenue rose 5.6% to 1.6 trillion, and net income was $3 billion, compared to $3bn a year earlier.
“Our operating results were stronger than expected and our outlook for revenue growth continues to improve,” said Steve Ballmer, chairman and chief executive officer of Microsoft.
Shares of Apple Inc. rose $1 to $66.77, while Tesla Motors Inc. gained $3 to $26.05.