The company’s fourth-quarter revenue and earnings exceeded investor expectations.
Microsoft hit a new 52-week high after releasing its fourth-quarter earnings report on Thursday. The company’s revenue hit $33.7 billion, which is up 12% from a year earlier. And the company’s adjusted net income rose 21% year over year to reach $10.6 billion.
Both figures beat analyst expectations and caused the company’s shares to rise by 2%. This is just more good news for Microsoft. The company’s shares are up more than 37% year to date and 33% from a year earlier.
Things that are going well for Microsoft
Microsoft is one of the most valuable companies in the world and this week, it proved that it continues to be a solid investment. Here is a look at some of the strong tailwinds propelling Microsoft forward.
Cloud computing services growth
One of the biggest things Microsoft has going for it is the strong demand for its cloud computing services. Companies are increasingly moving to the cloud and many are choosing the Azure platform. The Microsoft Azure platform grew 64% from a year earlier and its overall cloud revenue increased by 19%.
Strong results from office productivity products
The company’s office productivity products also grew by 14% during the fourth quarter. This includes LinkedIn, Office 365, and Dynamics. Sales of Office 365 software jumped 31%.
Next steps for Microsoft
One area where Microsoft didn’t see a lot of growth was in its gaming business. Revenue in this segment dropped 10% during the fourth quarter. However, the company plans to launch its next-generation Xbox console in 2020 so perhaps that will boost sales.
While the Azure platform continued to grow, its growth did decelerate in comparison to previous quarters. And the company had $5.3 billion in capital expenditures, which is the highest it’s been in the past four years.
This marks the company’s ninth straight quarter of double-digit revenue growth. And Microsoft’s CFO Amy Hood said the company expects to earn between $31.7 billion and $32.4 billion in revenue during its fiscal first quarter. This indicates that we can expect a lot more upside from Microsoft in years to come.