Arthur J. Villasanta – Fourth Estate Contributor
Redmond, WA, United States (4E) – Microsoft Corporation over the weekend became the second most valuable U.S. publicly traded company, displacing Amazon.com.
At the end of the trading day on Oct. 26, Microsoft’s market capitalization stood at $821 billion compared to $803 billion for Amazon. Apple, Inc, however, remains the most valuable U.S. firm with a market cap of $926.9 billion as of last week.
Microsoft last week also released its operating results for the first quarter of its 2019 fiscal year ending Sept. 30. It reported revenues of $29.1 billion, up 19% year-on-year. Operating income rose 29% to $10.0 billion.
Net income stood at $8.8 billion, or a rise 34% while diluted earnings per share was $1.14, up 36%.
“We are off to a great start in fiscal 2019, a result of our innovation and the trust customers are placing in us to power their digital transformation,” said CEO Satya Nadella. “We’re excited to help our customers build the digital capability they need to thrive and grow, with a business model that is fundamentally aligned to their success.”
Microsoft returned $6.1 billion to shareholders in the form of dividends and share repurchases in the Q1 2019, an increase of 27% year-on-year.
“Our record results for Q1 reflect our commitment to long-term strategic investments and consistent execution to drive revenue growth and operating margin expansion,” said Amy Hood, executive vice president and chief financial officer of Microsoft. “We see continued demand for our cloud offerings, reflected in our commercial cloud revenue of $8.5 billion, up 47% year over year.”
Revenue in Productivity and Business Processes amounted to $9.8 billion, up 19%. Responsible for the rise was the performance of Intelligent Cloud whose revenue rose $8.6 billion or a boost of 24%.
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