Microsoft, Inc. reported a flat net profit of $4.6 billion for Q1 2016, flat from $4.5 billion YoY, in spite of a turnover decline of 12% YoY to $20.3 billion from $23.2 billion. In constant currency terms, the turnover would have decreased only 2%. Earnings per share for the quarter increased to 58 from 55c YoY, an increase of 5.5%.
Of the three reportable segments, Microsoft’s ‘Intelligent Cloud’ segment was the only winner in turnover with a 7.6% increase YoY (14% at constant currency), even though the turnover from Office 365 was the biggest success story from within the Productivity and Business Processes segment achieved a 70% growth rate. Intelligent Cloud was also the only segment to report an increase in operating income of 14% YoY.
