Microsoft hit its $20 billion commercial cloud annual revenue run rate target and delivered better-than-expected first quarter results.
The commercial cloud target was set its $20 billion annual run rate goal in April 2015. For those keeping score at home, Microsoft's commercial cloud rollup includes Azure; Office 365 business services (Exchange Online, SharePoint Online, Skype for Business Online, Microsoft Teams); Dynamics 365; and its Enterprise Mobility + Security Suite (EMS).
Microsoft also started disclosing commercial cloud revenue by quarter.
Overall, Microsoft reported first quarter net income of $6.6 billion, or 84 cents a share, on revenue of $24.5 billion, up 12 percent from a year ago.
Wall Street was expecting Microsoft to report first quarter earnings of 72 cents a share on revenue of $23.56 billion.
Here's a look at what Microsoft products drove growth.
By the numbers:
- Productivity and business processes revenue was $8.2 billion, up 28 percent. The results were driven by Office 365 commercial revenue as well as Dynamics 365.
- LinkedIn revenue was $1.1 billion in the quarter.
- Server products and cloud services revenue was up 17 percent in the first quarter.
- Azure revenue growth was 90 percent in the third quarter.
- Surface revenue was up 12 percent due to sales of the latest Surface Laptop.