Microsoft Reports Revenue Growth in FY 2019 Despite Azure’s Decline
Microsoft released on Thursday, July 18, its quarterly report for the fiscal year 2019 with the earnings much higher than experts expected.
The company’s revenue was $33.72 billion, in comparison to $32.77 billion mentioned by Refinitiv analysts. Therefore, in Q4 of Microsoft’s 2019 fiscal year the revenue gained 12% in the fourth quarter of Microsoft’s 2019 fiscal year.
Microsoft stock was slightly on the rise following the report, with shares trading at $1.37. The shares gained 34% for the year. As a result, in April Microsoft’s market capitalization reached $1 trillion for the first time in the company’s history.
The revenue was not affected by the performance of Microsoft’s cloud business including Azure project. According to data provided by Reuters, Azure’s growth has gradually decreased in the past six quarters. In Q4 revenue from the cloud service gained 64%, in comparison to 73% last quarter.
Azure’s key competitor in cloud services is Amazon Web Services. The latter dominates the market with a 32.8% market share, while Microsoft is in second place with 14.6% and Google in the third with 9.9%.