Microsoft Q1 FY2016 earnings: $4.6bn net income on revenues of $20.4bn

Microsoft has published its latest financial results, covering the first quarter of its 2016 fiscal year (Q1 FY2016), which runs from July 1 to June 30. The previous quarter's results were heavily impacted by a $7.6 billion write-down - booked as an "impairment charge" related to its acquisition of Nokia's devices and services business.

Today, Microsoft reported a net income of $4.6bn GAAP ($5.4bn non-GAAP) for the quarter on $20.4bn GAAP ($21.6bn non-GAAP) of revenue.

Those figures compare with just over $4.5bn GAAP ($5.5bn non-GAAP) of net income and $23.2bn GAAP/non-GAAP of revenue in the same quarter one year ago.

Here are a few other highlights from today's results:

  • Phone revenue "down 54% in constant currency reflecting our updated strategy"
  • Surface revenue down from $908m to $672m year-over-year
  • Windows OEM revenue fell by 6%
  • Xbox Live monthly active users up by 28% to 39m
  • Search revenue (excluding traffic acquisition costs) up 29% in constant currency
  • Office commercial products and cloud services up 5% in constant currency
  • Office 365 consumer subscribers increased to 18.2m, up around 3m
  • Dynamics revenue up 12% in constant currency
  • Azure revenue and compute usage "more than doubled year-over-year"
  • Server products and cloud services up 13% in constant currency

Microsoft CEO Satya Nadella commented on today's results in a statement:

"We are making strong progress across each of our three ambitions by delivering innovation people love," said Satya Nadella, chief executive officer at Microsoft. “Customer excitement for new devices, Windows 10, Office 365 and Azure is increasing as we bring together the best Microsoft experiences to empower people to achieve more."

Microsoft also said that, during the quarter, it increased its quarterly dividend by 16% to $0.36.

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