Microsoft's market cap, dividends, sales and earnings in 2020

  •   DEHOUI Lionel

Founded in 1975, Microsoft is an American multinational computer and microcomputer company based in the United States. It specialises in the development and marketing of software, operating systems and related hardware products. During the year 2020, the group benefited greatly from the Covid-19 pandemic to achieve an excellent level of activity. For the full year 2020, its revenue was $143.02 billion with a net profit of $44.28 billion.

72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. This is an advert for trading CFDs on Plus500
Microsoft's market cap, dividends, sales and earnings in 2020
Image copyright: Robert Scoble - Flickr

Strong performance in Q1-2020

For the first quarter of 2020, Microsoft's revenue was $35.02 billion, up from $30 billion in the same period last year. This represents a 15% year-on-year increase. This increase was driven by strong performances in almost all of the group's divisions during the quarter.

The Azure division saw its revenues increase by 59% to $12.2 billion in Q1-2020. The More Personal Computing division grew by 3% to $11 billion in the quarter. The Xbox division benefited from the containment measures and posted a 2% growth compared to Q1-2019.

At that time, it had over 10 million subscribers to the Xbox Game Pass service. In Q1 2020, Productivity and Business Processes revenue came in at $11.7 billion, up 15% year-over-year. The Intelligent Cloud division as a whole grew 27% year-over-year in Q1-2019 with revenue reaching $12.3 billion.

Also, the LinkedIn division saw revenue growth of 21% compared to Q1-2019 levels. Furthermore, for the whole of Q1-2020, the software and operating system giant posted a net profit of $10.75 billion, up 22% year-on-year.

 

Microsoft beat expectations in Q2-2020

For the entire second quarter of its fiscal year 2020, Microsoft reported revenue of $36.9 billion. This exceeded market expectations of $35.7 billion for the period. The company's earnings per share were $1.51 in Q2-2020.

Here too, the group did better than the market's expectations. The market was expecting $1.32 per share. For the quarter, the company's operating income rose 35% year-on-year to $13.9 billion. Net income was $11.6 billion, up 38%.

In the second quarter of 2020, the Azure division grew by 62%, up from 76% a year earlier. Meanwhile, the Intelligent Cloud division saw revenue rise 27% year-on-year to $11.9 billion in Q2 2020.

 

Better results in Q3 2020

Microsoft's revenue grew significantly in Q3 2020. It amounted to $37.2 billion over this period. This performance was driven in particular by strong demand for remote services. In Q3-2020, the American group posted a net profit of $13.89 billion (or $1.82 per share), compared with $10.68 billion (or $1.38 per share) a year earlier.

The growth in the group's business this quarter was driven by the strong performance of Microsoft Azure. This is the company's cloud platform. Its results grew by 48% over the whole of Q3-2020, compared with 47% in the previous quarter. The market was expecting 43.45% growth.

In Q3 2020, the Intelligent Cloud division (including Azure) grew 20% with revenues reaching $13 billion.

 

Growing business in Q4 2020

For its final quarter of fiscal year 2020, Microsoft reported revenue of $38.0 billion. This was 13% higher than the same period last year. The company's profits were $11.2 billion, up 5% year-over-year.

The Intelligent Cloud segment contributed to the group's business growth in the fourth quarter of 2020 with revenues of $13.4 billion. This was 17% higher than in Q4 of the previous year. This increase is partly driven by Microsoft's Azure platform. It grew by around 50% in the quarter under review.

For the whole of Q4-2020, the Productivity and Business Processes division had revenues of $11.8 billion. The More Personal Computing segment grew 14% to $12.9 billion in the quarter.

The company's operating expenses were $12.3 billion in the fourth quarter of 2020, up 13%. This includes $450 million related to the closure of the physical Microsoft Store locations.

 

Microsoft's dividend and market capitalisation in 2020

The Microsoft group is one of the companies that pays dividends to its shareholders. For the past 18 years, it has continued to sacrifice to this tradition. Here are the details of the dividends distributed in 2020 with their detachment date.

  • 0.560 per share: 18 November 2020
  • 0.510 per share: 19 August 2020
  • 0.510 per share: 20 May 2020
  • 0.510 per share: 19 February 2020.

In addition, Microsoft went public for the first time in 1986. The company is listed on the US Nasdaq market. It is one of the companies that make up the Dow Jones stock market index. In 2020 (as of October), its market capitalisation was 1,635 billion dollars.

72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. This is an advert for trading CFDs on Plus500