Microsoft’s future trumps its present

Microsoft didn’t exactly end its best year on a high note. In this environment, however, investors seem more than happy for a repeat performance.

The software giant’s fourth fiscal quarter results on Tuesday night showed Microsoft was resilient but not immune to the economic forces weighing on businesses around the world. Revenue and operating income both narrowly missed Wall Street targets despite the company revising its guidance in June due to the effects of the stronger dollar. Microsoft’s crucial cloud segment also fell slightly below expectations for the first time in at least five years, according to FactSet. Yet Microsoft ended its fiscal year with revenue growth of 18% – its highest since 2008 – and operating margins holding at a two-decade high of 42% for the second year in a row.