For the last several years, Microsoft (MSFT) has made good on a promise to beat the “law of large numbers,” posting consistent double-digit revenue gains even as annual sales topped $50 billion. Shareholders, though, largely yawned and the stock drifted sideways. But with its fiscal first-quarter results reported Oct. 25, Microsoft finally has their attention.
The software giant posted its fastest first-quarter revenue growth since 1999 and saw its stock soar in after-hours trading to its highest levels in five years. Revenue climbed 27%, to $13.8 billion, while operating income increased 32%, to $5.9 billion. PC purchases that exceeded expectations and record-breaking sales of the Halo 3 video game fueled results that beat analyst revenue expectations by roughly $1 billion.
