Microsoft posts $35 billion in revenue in Q1, up 15%, says coronavirus had ‘minimal’ impact on revenue

Microsoft crushes quarterly earnings as the tech giant reported a $35 billion in revenue for the quarter. Microsoft also beat analysts’ estimate. The company said in a statement that the coronavirus “had minimal net impact on the total company revenue” in the quarter and that “effects of COVID-19 may not be fully reflected in the financial results until future periods.”

Below is a summary of the company’s revenue for the quarter.

· Revenue was $35.0 billion and increased 15%

· Operating income was $13.0 billion and increased 25%

· Net income was $10.8 billion and increased 22%

· Diluted earnings per share was $1.40 and increased 23%

Microsoft’s revenue grew 15% from $30.57 billion on an annualized basis in the quarter, according to the statement. Analysts had expected $1.26 in adjusted earnings per share on $33.66 billion in revenue for the quarter, which ended on March 31. Net income rose 22% to $10.8 billion.

“We’ve seen two years’ worth of digital transformation in two months. From remote teamwork and learning, to sales and customer service, to critical cloud infrastructure and security – we are working alongside customers every day to help them adapt and stay open for business in a world of remote everything,” said Satya Nadella, chief executive officer of Microsoft. “Our durable business model, diversified portfolio, and differentiated technology stack position us well for what’s ahead.”

“In this dynamic environment, our sales teams and partners executed a solid third quarter, with Commercial Cloud revenue generating $13.3 billion, up 39% year over year,” said Amy Hood, executive vice president and chief financial officer of Microsoft. “We remain committed to balancing operational discipline with continued investments in key strategic areas to drive future growth.”

The results, along with Alphabet’s on Tuesday and Facebook’s on Wednesday, show that the mega-cap tech companies have held up so far, at a time when unemployment broadly is skyrocketing and the economy is shrinking. Alphabet and Facebook both indicated that ad prices are stabilizing after a steep drop in March.