Microsoft releases record 2019 earnings report

Microsoft released its annual fourth-quarter results on Thursday, 18 July 2019 — detailing a record-breaking fiscal year. The technology company officially ended its financial year on 30 June 2019. Here’s a quick look:

• Revenue was $125.8 billion and increased 14 per cent
• Operating income was $43.0 billion and increased 23 per cent
• Net income was $39.2 billion GAAP and $36.8 billion non-GAAP and increased 137 per cent and 22 per cent, respectively
• Diluted earnings per share was $5.06 GAAP and $4.75 non-GAAP and increased 138 per cent and 22 per cent, respectively
• GAAP results include a $2.6 billion net income tax benefit

“It was a record fiscal year for Microsoft, a result of our deep partnerships with leading companies in every industry,” says Satya Nadella, CEO of Microsoft.

“Every day we work alongside our customers to help them build their own digital capability – innovating with them, creating new businesses with them, and earning their trust. This commitment to our customers’ success is resulting in larger, multi-year commercial cloud agreements and growing momentum across every layer of our technology stack.”

Amy Hood, executive VP and CFO of Microsoft, adds, “Q4 commercial cloud revenue increased 39 per cent year-over-year to $11.0 billion, driving our strongest commercial quarter ever”.

In a surprise turn, Microsoft still manages to pull off a record year despite a 10 per cent year-on-year decline in gaming revenue. In an article for My Broadband, Bradley Prior says, “Microsoft’s upcoming Xbox system, which is codenamed Project Scarlett, is expected to turn this decline around”.

By Jenna Cook

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