Microsoft Corporation (MSFT): Why The Stock Rose On Q1 Earnings

Microsoft’s subscription strategy for Office maintained its trend of rapid growth, zooming from 5.6 million in the June quarter to more than 7 million.

Xbox sales more than doubled, and phone hardware sales grew to $2.6 billion from just under $2 billion in the June quarter. More importantly, the phone division added $478 million to Microsoft’s bottom line. In the previous quarter the phone division had a $692 million loss.

Meanwhile, commercial revenue grew just 10% to $12.28 billion, but several key areas performed well.

In particular, server products and services revenue was up 13%, and commercial cloud revenue rose 128%. Those are both areas that Microsoft is counting on for future growth.

MSFT stock is up more than 22% year to date.

Money MorningWritten By David Zeiler From Money Morning

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