Microsoft Corporation (MSFT) Stock Little Changed By Earnings Beat

Microsoft Corporation (NASDAQ:MSFT) released its FQ2 2018 earnings results after closing bell this afternoon. Microsoft earnings came in at 96 cents per share on a non-GAAP basis, while revenue rose 12% to $28.9 billion. Analysts had been looking for earnings of 86 cents per share on $28.39 billion in sales. In the same quarter a year ago, Microsoft reported $25.8 billion in revenue.

MSFT earnings swing to a loss

On a GAAP basis, Microsoft posted losses of 82 cents per share, including a net charge totally $13.8 billion in connection with the tax reform bill.

“This quarter’s results speak to the differentiated value we are delivering to customers across our productivity solutions and as the hybrid cloud provider of choice,” CEO Satya Nadella said in a statement on Microsoft earnings. “Our investments in IoT, data, and AI services across cloud and the edge position us to further accelerate growth.”

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Microsoft Chief Financial Officer Amy Hood added that the company’s commercial cloud revenue grew 56% year over year to hit $5.3 billion in the FQ2 of 2018. She cited strong execution from the company’s sales teams and partners for the growth recorded across business lines.

Microsoft records strong growth across segments

Productivity and Business Processes revenue rose 25% year over year to $9 billion as Office commercial and cloud services revenue grew 10%. Office consumer products and cloud services revenue was up 12$, while Dynamics products and cloud services revenue grew 1-%. LinkedIn revenues grew more than 20% to $1.3 billion.

Intelligent Cloud revenues jumped 15% year over year to $7.8 billion, including an 18% increase in Server products and cloud services revenue and a 5% increase in Enterprise Services revenue. More Personal Computing revenue grew 2% year over year to $12.2 billion. Windows OEM revenue was up 4%, while Windows commercial revenues fell 4%. Gaming revenue grew 8%, while search ad revenue increased 15%, excluding traffic acquisitions costs. Surface revenue grew 1% year over year.

Microsoft stock ticked down by as much as 0.18% to $94.84 in after-hours trading.