Microsoft (MSFT) FY2018 results: revenue $110.4 billion, up 14.3% on the year
Microsoft Corp. (MSFT) reported revenue of $110.4 billion for fiscal 2018, the year ended 30 June 2018, up 14.3% on the year before. Net income was $16.6 billion, down 35.0%, and diluted earnings per share $2.13. The figures are the company's own, from the 10-K it filed with the SEC on 3 August 2018.
Revenue
$110.4 billion
+14.3% on the year
FY2011FY2018
Operating margin
31.8%
30.1% a year earlier
FY2011FY2018
Net income
$16.6 billion
-35.0% on the year
FY2011FY2018
Diluted EPS
$2.13
-34.5% on the year
FY2011FY2018
this yearthe year beforeHover a bar for its figure.
The year in brief
Income statement (profit and loss)
$ million
FY2018
FY2017
FY2016
On the year
Last 8 years
Revenue
110,360
96,571
91,154
+14.3%
Cost of revenue
38,353
34,261
32,780
+11.9%
Gross profit
72,007
62,310
58,374
+15.6%
Gross margin
65.2%
64.5%
64.0%
Research and development
14,726
13,037
11,988
+13.0%
Operating income
35,058
29,025
26,078
+20.8%
Operating margin
31.8%
30.1%
28.6%
Interest expense
2,733
2,222
1,243
+23.0%
Pre-tax income
36,474
29,901
25,639
+22.0%
Income tax
19,903
4,412
5,100
+351.1%
Effective tax rate
54.6%
14.8%
19.9%
Net income
16,571
25,489
20,539
-35.0%
Net margin
15.0%
26.4%
22.5%
Diluted EPS
$2.13
$3.25
$2.56
-34.5%
$ million except per share. Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.
Cash flow
$ million
FY2018
FY2017
FY2016
On the year
Last 8 years
Operating cash flow
43,884
39,507
33,325
+11.1%
Capital expenditure
11,632
8,129
8,343
+43.1%
Free cash flow
32,252
31,378
24,982
+2.8%
Free cash flow margin
29.2%
32.5%
27.4%
Cash from investing
-6,061
-46,781
-23,950
Cash from financing
-33,590
8,408
-8,393
Depreciation and amortisation
9,900
7,800
5,878
+26.9%
Share-based compensation
3,940
3,266
2,668
+20.6%
Buybacks
10,721
11,788
15,969
-9.1%
Dividends paid
12,699
11,845
11,006
+7.2%
Dividend per share
$1.68
$1.56
$1.44
+7.7%
Diluted shares, weighted
7,794m
7,832m
8,013m
-0.5%
Shares outstanding at period end
7,677m
7,708m
7,808m
-0.4%
Balance sheet
$ million
FY2018
FY2017
FY2016
On the year
Last 8 years
Shareholders' equity
82,718
87,711
83,090
-5.7%
Short-term borrowings
0.0
n/a
n/a
Debt
76,200
86,194
53,461
-11.6%
Operating lease liabilities
5,568
5,372
n/a
+3.6%
Other liabilities
94,362
71,035
57,143
+32.8%
Total liabilities and equity
258,848
250,312
193,694
+3.4%
Fixed assets
29,460
23,734
18,356
+24.1%
Goodwill
35,683
35,122
17,872
+1.6%
Intangible assets
8,053
10,106
3,733
-20.3%
Investments
123,684
131,341
117,161
-5.8%
Cash and equivalents
11,946
7,663
6,510
+55.9%
Receivables
26,481
22,431
18,277
+18.1%
Inventory
2,662
2,181
2,251
+22.1%
Other assets
20,879
17,734
9,534
+17.7%
Total assets
258,848
250,312
193,694
+3.4%
10-K for the year ended 30 June 2018, filed 3 August 2018: the filing.