Microsoft - Pure-play Cloud and AI in the making

Back then, its 3 business segments - Productivity and Business Processes, Intelligent Cloud, and More Personal Computing were all 3 strong pillars, each contributing 33% of Microsoft's total revenue.

Fast forward to today, one of the pillars became the dominant revenue and growth driver.

Here are 2 major points I like most about Microsoft's stellar quarterly results.

Total revenue was up 7%, driven by Productivity and Business Processes and Intelligent Cloud, but partially offset by a drop in More Personal Computing.

Office Commercial products, cloud services revenue, and server products continue to post strong growth momentum, while devices and Windows OEM revenue were the laggards.

The top line might have only grown by 7%, but the gross margins and operating margins still managed to eke out a 1pt growth in challenging times.

YoY wise, gross margin and operating income grew by 9% and 10% respectively, due to cost optimization

Due to lower weighted average shares outstanding, diluted earnings per share grew by 10%.

Microsoft's results seem to be faultless this time around.

Do you agree?

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