As for Azure and Microsoft's other cloud businesses, the revenue was $6.8 billion, up by 11% YoY. Hershey is adding Azure to a cloud computing strategy that also includes Amazon Web Services, using Microsoft's machine-learning technology to analyze data captured by sensors.
Shares fell 1.6% to $67.20 in after-hours trading as adjusted per-share earnings beat expectations and revenue fell short of expectations.
Even as the Windows operating-system franchise continues to generate big profits, the cloud gains are crucial as Microsoft battles Amazon.com Inc. and Alphabet Inc.'s Google for a piece of the so-called cloud-infrastructure market that is expected to reach $71.55 billion in 2020, up from $25.29 billion past year, according to market-research firm Gartner Inc. Diluted earnings per share stood at $0.73 non-GAAP ($0.61 GAAP). The Street had expected the segment to bring in $6.60 billion in revenue, according to a StreetAccount consensus estimate. Microsoft said the product saw sales growth of 93 percent. Microsoft has not significantly refreshed its Surface Pro or Surface Book line, and Surface revenue has dipped 26 percent as a result to $831 million.
Under Chief Executive Satya Nadella, who took the helm in 2014, Microsoft has sharpened its focus on the fast-growing cloud computing unit to counter a prolonged slowdown in the PC market, which has weighed on demand for its Windows software. Commercial cloud run rate is calculated by taking revenue from the last month of the quarter for Office 365 commercial, Azure, Dynamics 365, and other cloud properties and multiplying it by 12.
Microsoft announced that LinkedIn sales hit $975 million in the first full quarter since the acquisition. Xbox software and services revenue rose by 7% (8% CC), "driven by continued adoption of digital distribution and a strong game lineup".
Analysts claim OLED iPhone could be delayed by up to two months
Apple typically starts mass production of new iPhones several months before they're announced and still faces supply constraints. Apple has explored equipping an augmented reality-based features and depth-of-field enhancements to its iPhone camera system.
Trump tweets don't help: 1st Twitter revenue drop since IPO
Twitter posted a loss of 9 cents per share in the first quarter, which was better than the expected loss of 20 cents per share. Analysts were lukewarm on Twitter's prospects heading into the quarterly results, underlining significant revenue headwinds.
Macron targeted by hackers, cyber firm says
The domains were likely used by Pawn Storm to attack the campaign, according to a Trend Micro statement emailed to Fox News. The campaign has previously made allegations that Russian Federation was launching hacking campaigns against Macron staff.
Sheriff: 'Bachelor' star refused to answer door after crash
Mosher and his family live on a farm near the scene of the crash and have lived in the town for the majority of their lives. Chris ended up fleeing the scene of the accident and was arrested soon after, but is already out on a $10,000 bond.
North Korea marks military anniversary with firing drill
In a phone conversation with Trump on Monday, Chinese President Xi Jinping called for all sides to exercise restraint. South Korea's Defense Ministry has said the North appears ready to conduct such "strategic provocations" at any time.