Microsoft cloud annualized run rate passes $20 billion

More than three years ago, Microsoft promised to reach an annualized revenue of $20 billion in its corporate cloud business by the end of its 2018 fiscal year (ending in June 2018). The company has delivered early: In its Q1 2018 earnings released today, the company has shared that its cloud annualized run rate has hit $20.4 billion.

In Q1 2018, Microsoft reported revenue of $24.5 billion, net income of $6.6 billion, and earnings per share of $0.84 (compared to revenue of $22.3 billion, net income of $6.0 billion, and earnings per share of $0.76 in Q1 2017). Analysts had expected Microsoft to earn $23.56 billion in revenue and earnings per share of $0.72. In short, the company beat expectations. The company’s stock was flat in regular trading, but up 4 percent in after-hours trading (expected, given the results). Microsoft said it returned $4.8 billion to shareholders in the form of share repurchases and dividends during the quarter.