• Software maker Microsoft posted fiscal third-quarter earnings that topped   foreasts.

  • Microsoft’s   revenue increased by 18% year over year (compared with 20% in the previous   quarter) to a higher-than-expected $49.36 billion. Microsoft guided for   fiscal fourth-quarter revenue of between $52.4 billion to $53.2 billion.

  • Microsoft   announced its plan to acquire video-game publisher Activision Blizzard for   $68.7 billion, the largest transaction in Microsoft’s 47-year history. It   also closed its health care industry acquisition, Nuance Communications,   which added $111 million in revenue to Microsoft’s top line.

  • Sales   and marketing expenditures jumped 10% y/y to $5.6 billion, the fastest growth   in more than three years.

  • Microsoft’s   Intelligent Cloud segment, which contains Microsoft’s Azure public cloud   hosting (along with SQL Server, Windows Server and enterprise services)   generated $19.05 billion in revenue, up 26% y/y. Revenue from Azure and other   cloud services jumped 46% in the quarter – with CEO Satya Nadella announcing   that the number of Azure deals worth at least $100 million in the quarter had   more than doubled.

  • Microsoft’s   Productivity and Business Processes segment, which houses its Office   productivity software, LinkedIn and Dynamics, posted an better-than-expected   $15.79 billion in revenue, up 17% in the quarter. It raised the prices of   certain Office 365 productivity software subscriptions in the period.

  • Lastly,   the More Personal Computing Segment (including Windows, Xbox, and search   advertising) increased revenue 11% to $14.52 billion.

  • Microsoft   is an incredible business with operations supporting widely used operating   systems, software and cloud services. We own the stock across managed   portfolios as well as the Cratos BCI Wordlwide Flexible fund.