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January 26, 2006

Microsoft earnings meet Wall Street expectations

Posted by David Hunter at 5:07 PM ET.

Bill Snyder at

Microsoft grew revenue by 9% during its fourth quarter to a record $11.84 billion, but still fell a bit shy of Wall Street’s expectations and didn’t deliver any of the earnings upside that some were hoping for.

The world’s largest software company posted a profit of $3.65 billion, or 34 cents a share, including a 1-cent-a-share tax benefit, which equaled the 33-cents-a-share consensus of analysts polled by Thomson First Call. Analysts were looking for sales of just under $12 billion.

Operating income in the quarter dropped by 2% to $4.66 billion, reflecting heavy investments for the company’s new line of products, Microsoft said after the closing bell Thursday.

The best news (as always lately) was in Servers and Tools. From the press release:

Server and Tools revenue grew 14% over the prior year on strength across the product line. The growth of SQL Server was robust with over 20% year over year revenue growth.

Update: Also worthy of note is that the outlook offered by Microsoft for the quarter ending in March and the reminder of fiscal year ending in June is almost identical to this quarter’s results.

Filed under Financial, General Business

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One Response to “Microsoft earnings meet Wall Street expectations”

  1. Microsoft News Tracker » Microsoft earnings segment breakout Says:

    [...] The most interesting part of a Microsoft earnings statement is generally the breakout of the results by business segment. The segment numbers are reproduced below and the 10-Q provides detailed explanations, but here are some key points: [...]

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