Microsoft Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Microsoft Corp (MSFT) from 2012 to 2016. This company generated a total of $85.3 billion revenues during 2016. In this article, you can find reported revenue growth of -8.8% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in June.

Microsoft Revenues From 2012 to 2016

Here are the revenues and the revenue growth details of Microsoft during the last five years:

• Microsoft generated a total of $73.7 billion revenues during 2012. They reported a revenue growth of 5.4% year-over-year during 2012.
• Microsoft generated a total of $77.8 billion revenues during 2013. They reported a revenue growth of 5.6% year-over-year during 2013.
• Microsoft generated a total of $86.8 billion revenues during 2014. They reported a revenue growth of 11.5% year-over-year during 2014.
• Microsoft generated a total of $93.6 billion revenues during 2015. They reported a revenue growth of 7.8% year-over-year during 2015.
• Microsoft generated a total of $85.3 billion revenues during 2016. They reported a revenue growth of -8.8% year-over-year during 2016.

Why Analyze Revenue Growth?

Revenue growth is the most commonly analyzed financial metric. Revenue Growth is the percent increase (or decrease) of a company’s revenue between two time periods. It is computed by using the following formula: ((revenues during the time period two – revenues during the time period one) / revenues during the time period one)*100.

If the time periods are two consecutive years, then the revenue growth is referred to as the annual revenue growth year-over-year. If the time periods are two consecutive quarters, then the revenue growth is referred to as the quarterly revenue growth quarter-over-quarter. Also, if the time periods refer to the same quarter in the two consecutive years, then the revenue growth is referred to as quarterly revenue growth year-over-year.

In case the time periods are two non-consecutive years, then the revenue CAGR (Commutative Annual Growth Rate) is computed.

Revenue growth analysis is important for a number of reasons. First, it helps in understanding how a business is performing. If the revenue growth rates are positive, it means the business is performing well and the revenues are increasing. But, if the revenue growth rates are negative, it means the revenues are declining and the company needs to take measures to increase them. If they don’t, the company will continue to shrink. Second, a company’s historical revenue growth analysis along with the market size and market share analysis helps in forecasting the future revenues of a company. Third, a comparison of a company’s growth rates with its competitors helps in determining who is winning more business.

A revenue growth higher than the industry average translates into increasing market share. Companies with very high revenue growth rates have the potential to be the industry disrupters.

Microsoft Ranking

With $85.3 billion revenues, Microsoft ranked number 26 in the R&P; Research list of top-3000 public companies in the US by revenues during 2016. Each one of the top-3000 companies generated more than $50 million of annual revenues during 2016.

The top-20 companies in the US by revenues during 2016 were:

1. Walmart ($482.1 billion)
2. ExxonMobil ($226.1 billion)
3. Berkshire Hathaway ($223.6 billion)
4. Apple ($215.6 billion)
5. McKesson ($190.9 billion)
6. UnitedHealth Group ($184.8 billion)
7. CVS Health ($177.5 billion)
8. General Motors ($166.4 billion)
9. AT&T; ($163.8 billion)
10. Ford Motor ($151.8 billion)
11. AmerisourceBergen ($146.8 billion)
12. Amazon ($136 billion)
13. Verizon ($126 billion)
14. General Electric ($123.7 billion)
15. Cardinal Health ($121.5 billion)
16. Costco ($118.7 billion)
17. Walgreens Boots Alliance ($117.4 billion)
18. Chevron ($114.5 billion)
19. Kroger ($109.8 billion)
20. Express Scripts Holding ($100.3 billion)

For the purpose of performance benchmarking of a company with a sector or industry average, R&P; Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For example, Life Sciences sector is comprised of following industries: Pharmaceuticals; Medical Devices; Biotechnology; Diagnostics & Scientific Instruments.

Microsoft is associated with Technology Sector and Software Industry.

With $85.3 billion revenues, Microsoft ranked number 4 of all the companies in the US Technology sector. There were a total of 406 public companies in the US Technology sector that had revenues greater than $50 million during 2016.

The top-10 companies in the US Technology sector by revenues during 2016 were:

1. Apple ($215.6 billion)
2. Amazon ($136 billion)
3. Alphabet ($90.3 billion)
4. Microsoft ($85.3 billion)
5. IBM ($79.9 billion)
6. Intel ($59.4 billion)
7. Hewlett Packard Enterprise ($50.1 billion)
8. Cisco Systems ($49.2 billion)
9. HP ($48.2 billion)
10. Oracle ($37 billion)

Technology sector is comprised of the following industries: Computers Systems and Peripherals; Software; Semiconductor; IT Consulting and Outsourcing Services; Networking Equipment and Services; Internet; Other. The definitions for each of the industries is as follows:

• Computers Systems and Peripherals industry includes companies primarily engaged in manufacturing of personal computers, servers, mainframes, workstations, and other computer accessories and peripherals such as storage drives, mice, keyboards and printers. It also includes manufacturers of mobile phones and tablets.
• Software industry includes businesses providing software products such as operating systems, productivity suites, enterprise software, data and analysis software, advertising and marketing software, engineering and manufacturing software, networking software, and IT management software. It also includes companies providing industry-specific software focused on different sectors such as Financials, Automotive, Telecom, Utilities, Travel, Real Estate, Media, and Publishing.
• Semiconductor industry includes companies primarily engaged in manufacturing and distribution of semiconductor products such as microprocessors, chipsets, motherboards, flash memory, and wired and wireless connectivity products. It also includes companies that provide semiconductor equipment and services to the semiconductor industry.
• IT Consulting and Outsourcing Services industry includes companies primarily engaged in providing information technology consulting and outsourcing services to other businesses. The services include IT consulting, systems integration, application development and management, IT infrastructure management, and network operations management.
• Networking Equipment and Services industry includes companies primarily engaged in manufacturing and distribution of networking and communications equipment for transporting data, voice, and video traffic across intranets, extranets, and the Internet. The key products include routers and switches for local and wide-area networks, cable modems, teleconferencing equipment, and wireless access points.
• Internet industry includes Internet-based businesses providing products and services such as search engines, social networking, web hosting, email, domain name registration, and eCommerce. It also includes industry information/services portals focused on different sectors such as Financials, Automotive, Travel, Health, Real Estate, Media, and Publishing.
• Other industry includes companies providing products such as photocopiers, fax machines, point of sale machines, audio/video technologies, and video games. It also includes technology companies that are not part of other six technology industries.

With $85.3 billion revenues, Microsoft ranked number 1 of all the companies in the US Software industry. There were a total of 140 public companies in the US Software industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Software industry by revenues during 2016 were:

1. Microsoft ($85.3 billion)
2. Oracle ($37 billion)
3. VMWare ($7.1 billion)
4. Salesforce.com ($6.7 billion)
5. Adobe Systems ($5.9 billion)
6. Intuit ($4.7 billion)
7. CA Technologies ($4 billion)
8. Symantec ($3.6 billion)
9. ScanSource ($3.5 billion)
10. Citrix Systems ($3.4 billion)

COMPANIES SEGMENTATION

To identify and analyze high/low growth or most/least profitable similar-size companies in different sectors or industries, R&P; research classifies all companies into different segments based upon their revenues, revenue growth, and net profit margins.

Based upon their annual revenues, the companies are classified into one of the following four segments:

1. Mega companies, having revenues greater than $50 billion.
2. Very Large companies, having revenues between $10 billion and $50 billion.
3. Large companies, having revenues between $1 billion and $10 billion.
4. Mid-size companies, having revenues between $50 million and $1 billion.

With $85.3 billion revenues, Microsoft was in the Mega companies revenue segment during 2016. There were a total of 54 companies in the Mega companies revenue segment during 2016.

Based upon their annual revenue growth, the companies are classified into one of the following eight segments:

1. Very High positive growth companies, having annual revenue growth greater than 50%.
2. High positive growth companies, having annual revenue growth between 20% and 50%.
3. Medium positive growth companies, having annual revenue growth between 5% and 20%.
4. Low positive growth companies, having annual revenue growth between 0% and 5%.
5. Low negative growth companies, having annual revenue growth between -5% and 0%.
6. Medium negative growth companies, having annual revenue growth between -20% and -5%.
7. High negative growth companies, having annual revenue growth between -50% and -20%.
8. Very High negative growth companies, having annual revenue growth less than -50%.

With -8.8% revenue growth year-over-year, Microsoft was in the Medium negative revenue growth segment during 2016. There were a total of 448 companies in the Medium negative revenue growth segment during 2016. Of the US top-3000 companies, 1985 (nearly two-third of the total) had positive revenue growth and 1015 (nearly one-third of the total) had negative revenue growth during 2016.

Based upon their annual net profit margin, the companies are classified into one of the following eight segments:

1. Very High positive margin companies, having net profit margin greater than 50%.
2. High positive margin companies, having net profit margin between 20% and 50%.
3. Medium positive margin companies, having net profit margin between 5% and 20%.
4. Low positive margin companies, having net profit margin between 0% and 5%.
5. Low negative margin companies, having net profit margin between -5% and 0%.
6. Medium negative margin companies, having net profit margin between -20% and -5%.
7. High negative margin companies, having net profit margin between -50% and -20%.
8. Very High negative margin companies, having net profit margin less than -50%.

With a net margin of 19.7%, Microsoft was in the Medium positive net profit margin segment during 2016. There were a total of 1086 companies in the Medium positive net profit margin segment during 2016. Of the US top-3000 companies, 2244 (nearly three-fourth of the total) had positive net profit margin and 756 (nearly one-fourth of the total) had negative net profit margin during 2016.

Company Business Summary

Microsoft Corporation develops, licenses, and supports software products, services, and devices worldwide. The company’s Productivity and Business Processes segment offers Office 365 commercial products and services for businesses, including Office, Exchange, SharePoint, Skype for Business, and related Client Access Licenses (CALs); Office 365 consumer services, such as Skype, Outlook.com, and OneDrive.

Also, dynamics business solutions, such as financial management, enterprise resource planning, customer relationship management, supply chain management, and analytics applications for small and mid-size businesses, large organizations, and divisions of enterprises; and LinkedIn online professional network. Its Intelligent Cloud segment licenses server products and cloud services, such as SQL Server, Windows Server, Visual Studio, System Center, and related CALs, as well as Azure, a cloud platform with computing, networking, storage, database, and management services.

Microsoft also offer enterprise services, such as Premier Support and Consulting that assist in developing, deploying, and managing server and desktop solutions, as well as provide training and certification to developers and IT professionals on products.

The company’s More Personal Computing segment comprises Windows OEM, volume, and other non-volume licensing of the Windows operating system; patent licensing, Windows Internet of Things, MSN display advertising, and Windows Phone licensing system; devices, including Microsoft Surface, phones, and PC accessories; and search advertising, including Bing and Bing Ads. This segment also provides gaming platforms, including Xbox hardware, Xbox Live, video games, and third-party video games.

This company markets and distributes its products through original equipment manufacturers, distributors, and re sellers, as well as through online and retail stores. The company was founded in 1975 and is headquartered in Redmond, Washington.

Data Source

The chart and the data on this page are sourced from the R&P; Research Industry Intelligence Platform. The platform provides the key financial metrics for all the public companies in the United States. The platform empowers users to compare last five or 15 years financial data of a company with the other companies or the industry averages. This benchmarking exercise yields powerful insights that can drive better business decisions.

Industry Peers and Competitors of Microsoft

Oracle (ORCL) Business Analysis – Analyze Historical Performance, Strategic Priorities, And…

Oracle Corp with $37 billion revenues in the year 2016 was the number 2 Software company. Read this report to know the top competitors of Oracle and identify growth and cost optimization opportunities of Oracle

VMWare (VMW) Business Analysis – Analyze Historical Performance, Strategic Priorities, And…

VMWare Inc with $7 billion revenues in the year 2016 was the number 3 Software company. Read this report to know the top competitors of VMWare and identify growth and cost optimization opportunities of VMWare

Salesforce.com (CRM) Business Analysis – Analyze Historical Performance, Strategic Priorities, And…

Salesforce Com Inc with $7 billion revenues in the year 2016 was the number 4 Software company. Read this report to know the top competitors of Salesforce.com and identify growth and cost optimization opportunities of Salesforce.com

Adobe Systems (ADBE) Business Analysis – Analyze Historical Performance, Strategic Priorities,…

Adobe Systems Inc with $6 billion revenues in the year 2016 was the number 5 Software company. Read this report to know the top competitors of Adobe Systems and identify growth and cost optimization opportunities of Adobe Systems

Intuit (INTU) Business Analysis – Analyze Historical Performance, Strategic Priorities, And…

Intuit Inc with $5 billion revenues in the year 2016 was the number 6 Software company. Read this report to know the top competitors of Intuit and identify growth and cost optimization opportunities of Intuit

CA Technologies (CA) Business Analysis – Analyze Historical Performance, Strategic Priorities,…

CA Technologies with $4 billion revenues in the year 2016 was the number 7 Software company. Read this report to know the top competitors of CA Technologies and identify growth and cost optimization opportunities of CA Technologies

Revenues Analysis

MSFT Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Microsoft Corp (MSFT) from 2012 to 2016. They generated a total of $85.3 billion revenues during 2016. Microsoft reported a revenue growth of -8.8% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in June.

MSFT Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of Microsoft Corp (MSFT) from 2002 to 2016. They generated a total of $85.3 billion revenues during 2016. Microsoft reported a revenue growth of -8.8% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in June.

MSFT Revenue Growth Comparison With Industry Growth From 2012 To…

This report provides a comparison of Microsoft Corp (MSFT) revenue growth with Software industry growth during the last five years from 2012 to 2016. They reported a revenue growth of -8.8% year-over-year during 2016. The Software industry growth was 0.9% year-over-year during 2016. Microsoft growth was slower than the industry during 2016.

Profit Analysis

MSFT Net Profit And Net Margin From 2012 To 2016