Microsoft Corp. may not be cool, but its sales continue to defy expectations by growing at a much faster clip than those of its business-technology peers.
Microsoft’s revenue rose 11% from a year earlier in the three months ended Sept. 30, excluding Nokia ’s mobile-phone business that Microsoft purchased last spring.
Meanwhile, competitors in corporate technology—such as International Business Machines Corp. , Hewlett-Packard Co. and Oracle Corp. —posted shrinking or slow sales growth.
“Microsoft is bucking the trend,” said Daniel Ives, an analyst with FBR Capital Markets.
Microsoft’s stock rose 3.1% in after-hours trading Thursday following the release of its financial report for the fiscal first quarter. The company’s stock price has reflected strong revenue and profit growth in the past year.
Shares climbed 33% in the past year through Thursday’s market close, far outpacing the S&P 500 stock index over the period.
The company’s market value recently surpassed that of Google Inc. for the first time since June 2013.
The latest quarterly results continue a charmed first year in office for Satya Nadella , who in February was named chief executive, only the third in Microsoft’s history.
Mr. Nadella has focused on many of the same lines of business as his predecessors, and earlier investments in cloud computing and the Xbox videogame console have paid off under his watch.
Mr. Nadella has won over Wall Street with his willingness to cut jobs, favor innovation over existing businesses and de-emphasize products outside Microsoft’s core offerings.
In the most recent quarter, Microsoft’s revenue from software for business customers rose more than 9.5% from a year earlier.
The company had robust growth in both newer offerings such as Microsoft Office 365 (an online version of the popular desk-jockey software suite) and mature products like the version of Windows for computer servers.
Cloud software sold to businesses—primarily Office 365, the Microsoft Dynamics CRM sales tool and the Azure cloud-computing service—more than doubled to $1.18 billion, or roughly 5.1% of total revenue for the quarter.
But Microsoft executives said during a conference call that customers for Azure, which lets corporate IT departments and software developers rent computing horsepower and storage capacity by the hour, also buy the company’s traditional corporate software.
Microsoft’s mobile business remains a trouble spot. Sales of Windows-powered Nokia smartphones rose, but the company continues to lose market share toApple Inc. and manufacturers of phones that run Google’s Android operating software.
Microsoft made less money than it did a year earlier from its mobile-phone operating software business, largely because Android-phone makers such asSamsung Electronics Co. sold more of their inexpensive phones, which generate lower fees for Microsoft. Android phone makers pay Microsoft a royalty for Microsoft patents used in the Google operating system.
Sales of Windows operating software for personal computers also declined, but less than in prior quarters, driven by improving demand for PCs since their 2013 swoon.
Microsoft’s latest quarterly results continue a charmed first year in office for CEO Satya Nadella. Agence France-Presse/Getty Images
The company made more headway with its other consumer hardware products.
Revenue more than doubled for the Surface tablet computer, which sold poorly when it launched two years ago. The Surface Pro 3, released in June, received a more positive reception, the company said. The newer device is positioned more as a laptop replacement than a tablet computer.
Microsoft also sold twice as many Xboxes as a year ago, it said, helped by a $100 price cut for the latest model.
Despite Microsoft’s recent successes, Google tends to get the buzz once reserved for the Redmond, Wash., company.
In an interview, Microsoft Chief Financial Officer Amy Hood was unfazed. “I wasn’t that cool in high school, either,” she said.
Overall in the quarter, Microsoft revenue was $23.2 billion, including the Nokia business, compared with $18.5 billion a year ago. Net income fell to $4.5 billion, or 54 cents a share, from $5.2 billion, or 62 cents, in the same quarter last year.
Microsoft’s profit was weighed down by about $1.1 billion, or 11 cents a share, in costs related to a massive round of job cuts Mr. Nadella pushed through this summer and costs to integrate Nokia’s business into the rest of Microsoft.
Corrections & Amplifications
An earlier version of this story incorrectly said Microsoft’s decline in mobile-software revenue was due to a shift toward lower-cost Windows smartphones.
Write to Shira Ovide at email@example.com
Samsung Electronics Co. ( 005930.SE +0.96% ) estimated its third-quarter operating profit more than halved from a year earlier, hit by weak smartphone sales, forcing the company to rely more on its chip business to drive future earnings growth.
As stiff competition from Chinese vendors continues to pressure its mobile division profit—it derives more than 60% of its profit from the sale of mobile phones—investors have sold off Samsung shares on concerns about its outlook. Its stock is down about 15% so far this year.
The world’s largest smartphone maker by shipments said Tuesday its third-quarter operating profit likely fell 57.8% to 61.8% from a year earlier to between 3.9 trillion won ($3.6 billion) and 4.3 trillion won ($4.0 billion). Last year, Samsung reported an operating profit of 10.2 trillion won. A poll of seven analysts expected Samsung’s operating profit to come in at 4.3 trillion won.
Expectations for the quarter have already been low as sales of Samsung’s flagship device, Galaxy S5 have been weaker than expected and the company only began to sell its new smartphone-tablet hybrid the Galaxy Note 4 last month.
Samsung said in a statement that while smartphone shipments increased in the quarter, its operating margin was weighed down by hefty marketing costs and falling average selling prices. It didn’t provide specific figures.
It also sounded a cautious note for the fourth quarter noting the outlook remains uncertain.
The weak earnings guidance comes as Samsung struggles to figure out its broader growth strategy and amid expectations of a major restructuring later this year, according to people familiar with the situation.
Chairman Lee Kun-hee remains ill following a heart attack in May. While Samsung said Mr. Lee ’s health is improving, critics said the company lacks a visionary to steer the company into new growth areas especially at a challenging time.
Meanwhile, Samsung affiliates have been carrying out a series of financial transactions that will help heir-apparent and Mr. Lee’s only son, Jay Y. Lee, inherit the company from his father. The younger Mr. Lee, a vice chairman of Samsung Electronics, remains the biggest shareholder of a de facto holding company of the Samsung Group, South Korea’s biggest conglomerate.
Fortunately for Samsung, its lead in memory chips and tight supply is expected to cushion the blow from weak mobile phones sales this year. Analysts say chip profits could exceed those from mobile phones later this year.
The last time Samsung’s chip profits exceeded mobile profits was in the second quarter of 2011.
To continue to stay on top, Samsung on Monday announced plans to build a $14.7 billion plant over the next three years, to address future chip demand for various electronic devices ranging from smartphones, to tablet computers and robots.
“Samsung does make good memory chips,” said Doh Hyun-woo, an analyst with Mirae Asset Securities in Seoul, noting that the company will have to shift its gear to rely less on mobile phones and more on chips for profit growth.
He expects Samsung’s annual chip profits to rise 34% to 11.5 trillion won next year, from an estimated 8.6 trillion won this year. He forecasts that mobile operating profit will fall to 9.7 trillion won in 2015 from an estimated 14.8 trillion won this year.
Samsung didn’t provide a breakdown of profit estimates by businesses.
It will release final earnings figures later this month.
Write to Min-Jeong Lee at firstname.lastname@example.org