FX.co ★ Microsoft reports earnings and revenue growth for FY16 Q1

Microsoft Corporation, the largest software maker, reported that the net income for the first financial quarter rose by 1.8%. The earnings increased as a result of the cost reduction.
The data from the company revealed the net income of $4.62 billion, or $0.57 per share, in the September quarter compared with $4.54 billion, or $0.54 per share, for the same period last year. At the same time, Microsoft’s revenue dropped by 12% to $20.38 billion, while non-GAAP revenue was at $21.7 billion.
The analysts expected adjusted earnings per share and the company’s revenue at $0.59 and $21 billion, respectively.
For the first time the company divided its business lines into three new segments in this report. For example, More Personal Computing revenue tumbled by 17% to $9.38 billion with operating income down by 3.5% at $1.56 billion.
Revenue of Intelligent Cloud segment came in at $5.89 billion, up by 7.6%. Meanwhile, operating income increased by 14% to $2.4 billion.
Revenue of the segment responsible for Office service fell by 2.8% to $6.3 billion, while operating income declined by 7% to $3.11 billion.
Following the data, Microsoft stocks rose by 5% to $50.42 per share in after-hours trading.