Microsoft reported quarterly revenue of $35.0 billion, up 15% YoY, with net income of $10.8 billion, up 22% YoY. Diluted earnings per share was $1.40, an increase of 23%.
The company said COVID-19 was inconsequential to its financial performance.
“We’ve seen two years’ worth of digital transformation in two months. From remote teamwork and learning, to sales and customer service, to critical cloud infrastructure and security – we are working alongside customers every day to help them adapt and stay open for business in a world of remote everything,” said Satya Nadella, chief executive officer of Microsoft. “Our durable business model, diversified portfolio, and differentiated technology stack position us well for what’s ahead.”
“In this dynamic environment, our sales teams and partners executed a solid third quarter, with Commercial Cloud revenue generating $13.3 billion, up 39% year over year,” said Amy Hood, executive vice president and chief financial officer of Microsoft. “We remain committed to balancing operational discipline with continued investments in key strategic areas to drive future growth.”
Segment Highlights
Revenue in Productivity and Business Processes was $11.7 billion and increased 15% (up 16% in constant currency), with the following business highlights:
- Office Commercial products and cloud services revenue increased 13% (up 15% in constant currency) driven by Office 365 Commercial revenue growth of 25% (up 27% in constant currency)
- Office Consumer products and cloud services revenue increased 15% (up 17% in constant currency) with continued growth in Office 365 Consumer subscribers to 39.6 million
- LinkedIn revenue increased 21% (up 22% in constant currency)
- Dynamics products and cloud services revenue increased 17% (up 20% in constant currency) driven by Dynamics 365 revenue growth of 47% (up 49% in constant currency)
Revenue in Intelligent Cloud was $12.3 billion and increased 27% (up 29% in constant currency), with the following business highlights:
- Server products and cloud services revenue increased 30% (up 32% in constant currency) driven by Azure revenue growth of 59% (up 61% in constant currency)
- Enterprise Services revenue increased 6% (up 7% in constant currency)
Revenue in More Personal Computing was $11.0 billion and increased 3% (up 4% in constant currency), with the following business highlights:
- Windows OEM revenue was relatively unchanged year over year
- Windows Commercial products and cloud services revenue increased 17% (up 18% in constant currency)
- Search advertising revenue excluding traffic acquisition costs increased 1%
- Xbox content and services revenue increased 2%
- Surface revenue increased 1% (up 2% in constant currency)
https://www.microsoft.com/en-us/Investor/earnings/FY-2020-Q3/press-release-webcast