Microsoft posted quarterly revenue of $32.5 billion, up 12% yoy, and operating income of $10.3 billion, up 18% yoy. Net income was $8.4 billion GAAP and $8.6 billion non-GAAP.
“Our strong commercial cloud results reflect our deep and growing partnerships with leading companies in every industry including retail, financial services, and healthcare,” said Satya Nadella, CEO of Microsoft. “We are delivering differentiated value across the cloud and edge as we work to earn customer trust every day.”
Highlights
Revenue in Productivity and Business Processes was $10.1 billion and increased 13% (up 13% in constant currency), with the following business highlights:
- Office Commercial products and cloud services revenue increased 11% (up 11% in constant currency) driven by Office 365 Commercial revenue growth of 34% (up 33% in constant currency)
- Office Consumer products and cloud services revenue increased 1% (up 2% in constant currency) with growth in Office 365 Consumer subscribers to 33.3 million
- LinkedIn revenue increased 29% (up 30% in constant currency) with record levels of engagement highlighted by LinkedIn sessions growth of 30%
- Dynamics products and cloud services revenue increased 17% (up 17% in constant currency) driven by Dynamics 365 revenue growth of 51% (up 50% in constant currency)
Revenue in Intelligent Cloud was $9.4 billion and increased 20% (up 21% in constant currency), with the following business highlights:
- Server products and cloud services revenue increased 24% (up 24% in constant currency) driven by Azure revenue growth of 76% (up 76% in constant currency)
- Enterprise Services revenue increased 6% (up 7% in constant currency)
Revenue in More Personal Computing was $13.0 billion and increased 7% (up 7% in constant currency), with the following business highlights:
- Windows OEM revenue declined 5% (down 5% in constant currency)
- Windows Commercial products and cloud services revenue increased 13% (up 14% in constant currency)
- Surface revenue increased 39% (up 41% in constant currency)
- Gaming revenue increased 8% (up 9% in constant currency) with Xbox software and services revenue growth of 31% (up 32% in constant currency)
- Search advertising revenue excluding traffic acquisition costs increased 14% (up 14% in constant currency)
