Microsoft stock was up more than 4 percent on Thursday after the company reported better-than-expected earnings for the first quarter of its 2018 fiscal year, which ended on September 30.
- EPS: Excluding certain items, 84 cents vs. 72 cents as expected by analysts, according to Thomson Reuters.
- Revenue: $24.54 billion vs. $23.56 billion as expected by analysts, according to Thomson Reuters.
Perhaps the company's biggest achievement in this quarter is exceeding its self-imposed goal of a $20 billion in annualized revenue run rate for its commercial cloud business -- which includes the Azure cloud, the Office 365 subscription-based application suite and Dynamics 365 apps for customer relationship management and enterprise resource planning. The company came up with a $20.4 billion commercial cloud run rate for the quarter, according to the company's earnings statement.
KeyBanc analysts Brent Bracelin, Clarke Jeffries and Alyssa Johnson noted earlier this week that they were expecting the milestone either this quarter or the next one. The annualized run rate figure is calculated by multiplying revenue for the last month of the quarter by 12.
"Reaching $20 billion would imply the commercial cloud mix could cross over 20 percent of revenue for the first time in 1Q18, up from 5 percent in early 2015," the KeyBanc analysts wrote. The annualized run rate figure is calculated by multiplying revenue for the last month of the quarter by 12.