Microsoft Posts Very Good Results in the Last Quarter
Microsoft announced the results for its third fiscal quarter that ended March 31. The software maker posted results that were better than analysts estimates and were fueled by cloud sales.
Company's revenue in the quarter was $30.6 billion, an increase of 14% year over year. Operating income was $10.3 billion and increased 25%, net income reached $8.8 billion with 19% increase over 2018, while diluted earnings per share was $1.14 and increased 20%. Microsoft returned $7.4 billion to shareholders in the form of share repurchases and dividends in the third quarter of fiscal year 2019.
“Leading organizations of every size in every industry trust the Microsoft cloud. We are accelerating our innovation across the cloud and edge so our customers can build the digital capability increasingly required to compete and grow,” said Satya Nadella, CEO of Microsoft.
“Demand for our cloud offerings drove commercial cloud revenue to $9.6 billion this quarter, up 41% year-over-year,” said Amy Hood, executive VP and CFO of Microsoft. “We continue to drive growth in revenue and operating income with consistent execution from our sales teams and partners and targeted strategic investments.”
Revenue in Productivity and Business Processes was $10.2 billion and increased 14% (up 15% in constant currency). Office Commercial products and cloud services revenue increased 12% driven by Office 365 Commercial revenue growth of 30%. Office Consumer products and cloud services revenue increased 8% and Office 365 Consumer subscribers increased to 34.2 million. LinkedIn revenue grew 27% with record levels of engagement highlighted by LinkedIn sessions growth of 24%. Dynamics products and cloud services revenue increased 13% driven by Dynamics 365 revenue growth of 43%.
Revenue in Intelligent Cloud was $9.7 billion and increased 22% (up 24% in constant currency). Server products and cloud services revenue increased 27% driven by Azure growth of 73%. Enterprise Services revenue grew 4%. Revenue in More Personal Computing was $10.7 billion and increased 8% (up 9% in constant currency). Windows OEM revenue increased 9%, while Windows Commercial products and cloud services grew 18%. Surface revenue increased 21%, while Gaming had a 5% increase driven by Xbox software and services revenue growth of 12%.