The software maker reported earnings of 68 cents a share, beating the FactSet estimate of 63 cents a share by 5 cents. The company reported revenue of $20.40 billion, down 0.4% from $20.49 in the year-ago quarter. Analysts surveyed by FactSet expected revenue of $20.39 billion for the quarter.
Revenue from software sold to companies grew 7% to $12.23 billion in the quarter, while revenue from sales of products to consumers rose 12% to $8.3 billion.
"This quarter's results demonstrate the strength of our business, as well as the opportunities we see in a mobile-first, cloud-first world," CEO Satya Nadella said in a press release. "We are making good progress in our consumer services like Bing and Office 365 Home, and our commercial customers continue to embrace our cloud solutions. Both position us well for long-term growth."
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TheStreet Ratings team rates MICROSOFT CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate MICROSOFT CORP (MSFT) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, attractive valuation levels and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow."