MSFT FY 2018 Earnings Report — Microsoft Corporation Revenue & Financial Results | Market Cap Arena

Microsoft CorporationMSFT

FY 2018 Earnings

Reported August 3, 2018

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2018	Prior Q	FY 2017	QoQ Change	YoY Change
Revenue	$110.4B	—	$96.6B	—	14.3%
Op. Income	$35.1B	—	$29.0B	—	20.8%
Gross Margin	65.2%	—	64.5%	—	0.7pp
Net Margin	15.0%	—	26.4%	—	-11.4pp
EPS (Diluted)	$2.13	—	$3.25	—	-34.5%
Free Cash Flow	$32.3B	—	$31.4B	—	2.8%

Revenue Flow

Item	Amount
REVENUE	$110.4B
Cost of Revenue	$38.4B
GROSS PROFIT	$72.0B
R&D Expenses	$14.7B
Selling & Marketing	$17.5B
General & Administrative	$4.8B
SG&A Expenses	$22.2B
Other Expenses	$0
Operating Expenses	$36.9B
Cost & Expenses	$75.3B
OPERATING INCOME	$35.1B
Interest Income	$2.2B
Interest Expense	$2.7B
Other Income/Expenses	$1.4B
INCOME BEFORE TAX	$36.5B
Income Tax Expense	$19.9B
Net Income from Continuing Ops	$16.6B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$16.6B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$16.6B
D&A	$10.3B
EBIT	$39.2B
EBITDA	$49.5B
EPS	$2
EPS Diluted	$2

Income Statement

Item	Amount
REVENUE	$110.4B
Cost of Revenue	$38.4B
GROSS PROFIT	$72.0B
R&D Expenses	$14.7B
Selling & Marketing	$17.5B
General & Administrative	$4.8B
SG&A Expenses	$22.2B
Other Expenses	$0
Operating Expenses	$36.9B
Cost & Expenses	$75.3B
OPERATING INCOME	$35.1B
Interest Income	$2.2B
Interest Expense	$2.7B
Other Income/Expenses	$1.4B
INCOME BEFORE TAX	$36.5B
Income Tax Expense	$19.9B
Net Income from Continuing Ops	$16.6B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$16.6B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$16.6B
D&A	$10.3B
EBIT	$39.2B
EBITDA	$49.5B
EPS	$2
EPS Diluted	$2

Cash Flow Statement

Item	Amount
Net Income	$16.6B
Depreciation & Amortization	$10.3B
Stock-Based Compensation	$3.9B
Deferred Income Tax	-$5.1B
Other Non-Cash Items	-$2.2B
Change in Working Capital	$20.5B
OPERATING CASH FLOW	$43.9B
Capital Expenditure	-$11.6B
Acquisitions (Net)	-$888M
Purchases of Investments	-$137.4B
Sales/Maturities of Investments	$143.9B
Other Investing Activities	-$98M
NET CASH FROM INVESTING	-$6.1B
Net Debt Issuance	-$10.2B
Common Stock Repurchased	-$10.7B
Common Dividends Paid	-$12.7B
Other Financing Activities	-$971M
NET CASH FROM FINANCING	-$33.6B
FREE CASH FLOW	$32.3B
Net Change in Cash	$4.3B

Balance Sheet

Item	Amount
Cash & Equivalents	$11.9B
Short-Term Investments	$121.8B
Net Receivables	$26.5B
Inventory	$2.7B
Other Current Assets	$6.8B
TOTAL CURRENT ASSETS	$169.7B
PP&E (Net)	$36.1B
Goodwill	$35.7B
Intangible Assets	$8.1B
Long-Term Investments	$1.9B
Tax Assets	$0
Other Non-Current Assets	$7.4B
TOTAL NON-CURRENT ASSETS	$89.2B
TOTAL ASSETS	$258.8B
Account Payables	$8.6B
Short-Term Debt	$4.0B
Deferred Revenue	$28.9B
Other Current Liabilities	$13.3B
TOTAL CURRENT LIABILITIES	$58.5B
Long-Term Debt	$72.2B
Deferred Revenue NC	$3.8B
Deferred Tax Liabilities	$541M
Other Non-Current Liabilities	$31.4B
TOTAL NON-CURRENT LIABILITIES	$117.6B
TOTAL LIABILITIES	$176.1B
Common Stock	$71.2B
Additional Paid-In Capital	$0
Retained Earnings	$13.7B
Treasury Stock	$0
Accum. Other Comp. Income	-$2.2B
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$82.7B
Minority Interest	$0
TOTAL EQUITY	$82.7B
TOTAL LIABILITIES & EQUITY	$258.8B
Total Debt	$87.5B
Net Debt	$75.6B