'Renewed Confidence' in Microsoft After Earnings Report

By Kimberly Koerth Comments
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Microsoft's first-quarter earnings results, released last week, mark new CEO Satya Nadella’s first quantifiable measure of success and predict the company’s future under his leadership.

The Redmond, Wash.-based software giant's profit and revenue fell, but earnings still beat estimates thanks to increased customer adoption of cloud offerings such as Office 365.

Revenue continues to be driven by its enterprise businesses, but its three consumer business units boasted the most growth.

“These earnings show Microsoft’s business performance continuing on the same course and speed it has been for the last decade or more. I don’t expect to see business evidence of Microsoft’s new direction for at least a year and maybe more. What I do give Nadella high marks for, though, is his willingness to say, ‘Microsoft will now do things differently,’" Yankee Group VP of Research Carl Howe noted, commenting specifically on a PC World article. “He also is putting a somewhat more human face on the company by admitting that the firm has made missteps and missed market opportunities. So while the direction of the Microsoft supertanker remains the same, I think analysts, investors and employees are feeling renewed confidence in its new captain."

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