Intelligent Cloud segment, which includes its Azure on-demand computing services, revenues increased 15 percent to $7.8 billion, with Azure revenues surging 98 percent.
Facebook revenue for its fourth fiscal quarter of 2017, which ended December 31, hit $12.97 billion, up 48 percent from $8.8 billion for the same period in 2016.
Microsoft's coyness around Azure makes it hard to make a direct comparison with Amazon Web Services (AWS), but it does clump together a bunch of its cloud services under a "Commercial Cloud" heading to at least give us something; this includes Office 365, Dynamics 365, Azure and other cloudy things.
We say "only" because compared to the sizeable gains made elsewhere, revenue for Surface hardware increased by just 1%, effectively remaining stagnant.
Microsoft (MSFT) shares failed to get a bounce Thursday from the software company's beat-and-raise quarterly results posted late Wednesday. Unfortunately, as we already reported, Surface sales were up only 1 percent, with only $1.3 billion in sales.
Microsoft's Productivity and Business Processes unit, which includes commercial products under the Office branding and LinkedIn, also saw impressive growth, generating $9 billion in revenue, up 25% for the quarter.
Free Pack of Goodies Handed Out in Celebration of 5M Copies Shipped
Capcom is launching the crossover starting with a Ryu and Sakura cosmetic set of armor which an existing character can wear. Capcom: Infinite shipped one million units between its release in September and December 31st.
Tax reform impact: Microsoft recorded a net charge of $13.8B related to the tax reform.
Sales of Azure cloud-computing services nearly doubled as businesses increasingly seek to run applications and store data in Microsoft's data centres.
The company's shares were little changed in extended trading following the report, after closing at a record $95.01 in NY. There is also a decrease of 4% in Windows commercial products and cloud services revenue due to the impact of a prior year large deal.
Analysts had expected Microsoft to earn $28.39 billion in revenue and earnings per share of $0.86.
We continue to repeat the phrase that Microsoft's investments in the cloud are paying off, and until either stop happening, we'll continue to parrot it. Microsoft shows no signs of letting off the throttle for its cloud investments as it chases Amazon and there seems to be huge growth opportunities for businesses investing as much as them. Gaming revenue grew 8% in the holiday quarter driven by the Xbox One X launch.