Microsofts Q1 earnings boosted by cloud and Office as Surface and Xbox stall

Microsoft posted the first quarter of its 2020 financial results today, reporting revenue of $33.1 billion and a net income of $10.7 billion. Revenue is up 14 percent, and net income has increased by 21 percent. Once again, it’s Microsoft’s cloud and Office revenues that have pushed the company to solid earnings, as both Surface and overall gaming revenue has decreased.

Microsoft’s Surface revenue performed well in this same period last year, thanks to a boost from the introduction of the lower-cost Surface Go. During this quarter Microsoft didn’t refresh or release any Surface products, and revenue has dipped 4 percent as a result. Microsoft blames the “timing of product lifecycle transitions” for the miss.

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