![](http://midgardfinance.com/companies/M/MSFT/logo.png)
Microsoft issued a press release on its 2020 first quarter results after the markets closed with the following bullet points.
- Revenue was $33.1 billion and increased 14%
- Operating income was $12.7 billion and increased 27%
- Net income was $10.7 billion and increased 21%
- Diluted earnings per share was $1.38 and increased 21%
The figures below summarise the sales, profits and margins by each business segment.
![](http://midgardfinance.com/companies/M/MSFT/MSFT2020Q1_revenue.png)
![](http://midgardfinance.com/companies/M/MSFT/MSFT2020Q1_revenue2.png)
![](http://midgardfinance.com/companies/M/MSFT/MSFT2020Q1_margins2.png)
![](http://midgardfinance.com/companies/M/MSFT/MSFT2020Q1_revenue3.png)
![](http://midgardfinance.com/companies/M/MSFT/MSFT2020Q1_income3.png)
![](http://midgardfinance.com/companies/M/MSFT/MSFT2020Q1_margins3.png)
Valuation
Despite increasing sales and expanding margins Microsoft continues to be extravagantly priced. Better choices in the space might be IBM, Oracle and Cisco.
![](https://www.midgardfinance.com/plot/fundamentals/_/cloud_operatingMargin_quarterly_sumFalse_2019-10.png)
![](https://www.midgardfinance.com/plot/price/_/cloud_ps_2010-01-01.png)
![](https://www.midgardfinance.com/plot/price/_/cloud_evfcf_2019-01-01.png)
Media coverage
Reuters – Microsoft forecasts cloud sales above expectations
Reuters – Microsoft’s cloud business slows, casts shadow over results
Bloomberg – Microsoft Rallies as Results Beat ‘Virtually Every Metric’
Bloomberg – Microsoft Sales, Profit Top Estimates on Cloud; Azure Slows