Microsoft Q1 FY20 Earnings: Azure revenue growth falls to 59%

Reading time icon 1 min. read


Readers help support MSPoweruser. When you make a purchase using links on our site, we may earn an affiliate commission. Tooltip Icon

Read the affiliate disclosure page to find out how can you help MSPoweruser effortlessly and without spending any money. Read more

Microsoft today announced FY20 Q1 earnings results. The revenue was $33.1 billion and the operating income was $12.7 billion. Revenue in Intelligent Cloud was $10.8 billion and it increased 27%, with the following business highlights:

Microsoft reported that Server products and cloud services revenue increased 30% driven by Azure revenue growth of 59%. Enterprise services revenue increased 7%. For comparison, Microsoft reported server products and cloud services revenue growth of 22% and Azure revenue growth of 64% in the last quarter.

Enterprise Mobility continues to grow and its installed base increased to 120 million which is a 36% growth. Server products revenue including Windows and SQL server grew 12%, thanks to Windows Server 2008 and SQL Server 2008 end of support.

The gross margin dollars of this division grew 27%. The gross margin percentage increased because of material improvements in Azure gross margin offset by an increased mix of cloud offerings.

More about the topics: azure, Azure revenue growth, Earnings Report, Fiscal Year 2020, FY19 Q4, microsoft, Microsoft Q1 FY20 Earnings, MSFT

Leave a Reply

Your email address will not be published. Required fields are marked *