Microsoft profit up 17 percent, shares jump

Microsoft Corp said its fiscal first-quarter profit rose a greater-than-expected 17 percent, as strong sales of its Office and server software to businesses offset weakness in its flagship Windows system. Its shares rose 6 percent in after-hours trading.

The world's largest software company, which is shifting its focus to devices and services, on Thursday posted a profit of $5.2 billion, or 62 cents per share, up from $4.5 billion, or 53 cents per share, in the year-ago quarter. That smashed Wall Street's average forecast of 54 cents, according to Thomson Reuters I/B/E/S, although analysts had been edging down estimates for the last three months.

Revenue up

Revenue rose 16 percent to $18.5 billion, helped by rising sales of its Office software. Analysts had expected $17.8 billion, on average.

Reuters