Microsoft postes a profit of $20.5 billion in Q1 2017

Radu Tyrsina
by Radu Tyrsina
Founder & Editor-in-Chief
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Microsoft’s earning report for the first quarter of fiscal year 2017 is now out. The company posted a profit of $20.5 billion, with $22.3 billion of that categorized as non-GAP, meaning the tech giant overcame all analyst expectations.

The Surface revenue saw an increase of 38% YoY, mainly due to the success of the Surface Book and the Surface Pro 4. This generated $672 million profit in the Q1 in 2016, a number which grew to $926 million in this fiscal year. Moreover, Microsoft is introducing to the public a new version of the Surface device next week, another opportunity for more revenue.

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As expected, the Microsoft Phone series is in steady downfall. It declined by 72% this fiscal year. Even more so, the Xbox is not that successful either, even though the company recently released the Xbox One S model. According to its own reports, the gaming part of their business saw a 5% decline. Less people are now using the Xbox Live — 47 million active users,  or 2 million less than how many were using it in the Q4 in 2016 — +but it’s still up from the 39 million YoY.

Microsoft’s cloud business is also on the rise with an increase in profit of 8%. At the same time, Azure revenue is up by 116% while the company’s server and cloud services increased by 11%. Other products, like Office, saw a growth of 5%, while Office 365 increased by 51%.

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