The company also reported net income of $6.56 billion on operating income of $7.97 billion.
Investors had expected Microsoft to earn $0.68 on revenue of $23.7 billion. In after-hours trading, Microsoft is up several points. In regular trading, Microsoft managed a gain of under 0.2 percent by the end of the day.
Today’s earnings follow a strong fiscal first quarter for the company.
Microsoft reported Surface revenue of $893 million. In the final calendar period of 2013, the company introduced new Surface models, and saw shortages of the product. In the preceding quarter Microsoft had Surface top line of $400 million. So, the company more than doubled its Surface revenue in the quarter, which I think will more than meet expectations.
In related news, Nokia this morning reported a disappointing quarter-over-quarter decline in sales of Lumia Windows Phone handset, clouding Microsoft’s larger hardware vision. Still, the company claimed 7.4 million Xboxes sold to “the retail channel.” That combined with the Surface number means that Microsoft is performing well on two of its three main hardware efforts.
Critically, Windows OEM revenue for the period only declined 3 percent, a figure that was cushioned by 12 percent more OEM revenue to commercial customers. So, large companies offset weak consumer demand, mostly.
Revenue at the company’s Devices and Consumer group grew 13 percent to $11.91 billion. The company’s Commercial group saw its revenue expand 10 percent to $12.67 billion.
In total, and we’ll hear more on the call, Microsoft had a strong quarter. As the company looks to crown a new CEO to continue its new business model, the firm can for now be somewhat content that its current operations are in good health.
I’ll be digging into the Surface numbers shortly.