Microsoft Corp. today announced the following results for the quarter ended June 30, 2020, as compared to the corresponding period of last fiscal year:
- Revenue was $38.0 billion and increased 13%
- Operating income was $13.4 billion and increased 8%
- Net income was $11.2 billion and decreased 15% GAAP (up 5% non-GAAP)
- Diluted earnings per share was $1.46 and decreased 15% GAAP (up 7% non-GAAP)
“The last five months have made it clear that tech intensity is the key to business resilience. Organizations that build their own digital capability will recover faster and emerge from this crisis stronger,” said Satya Nadella, chief executive officer of Microsoft. “We are the only company with an integrated, modern technology stack – powered by cloud and AI and underpinned by security and compliance – to help every organization transform and reimagine how they meet customer needs.”
COVID-19 Impact
In the fourth quarter of fiscal year 2020, similar business trends to the previous quarter continued. In the Productivity and Business Processes and Intelligent Cloud segments, cloud usage and demand increased as customers continued to work and learn from home. Transactional license purchasing continued to slow, particularly in small and medium businesses, and LinkedIn was negatively impacted by the weak job market and reductions in advertising spend. In the More Personal Computing segment, Windows OEM, Surface, and Gaming benefited from increased demand to support work-, play-, and learn-from-home scenarios, while Search was negatively impacted by reductions in advertising spend.
Microsoft has been a solid play during the Covid-19 pandemic. Shares are up over 30% year to date.
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