Microsoft announced today that it earned a net income of $8.8 billion on revenues of $30.6 billion in the quarter ending March 31. Net income rose 19 percent, while revenues were up 14 percent year over year (YOY).
“Leading organizations of every size in every industry trust the Microsoft cloud,” Microsoft CEO Satya Nadella said in a prepared statement. “We are accelerating our innovation across the cloud and edge so our customers can build the digital capability increasingly required to compete and grow.”
More Personal Computing was again Microsoft’s biggest business unit, earning $10.7 billion in revenues in the quarter, a gain of 14 percent. Windows revenues from PC makers grew 15 percent overall, but consumer revenues were down 1 percent, so all of the growth came from businesses. Surface revenues hit $1.33 billion, down from $1.9 billion in the previous sequential quarter but up 21 percent from $1.1 billion in the year-ago quarter. Gaming revenue was up to $2.4 billion, though Xbox Live monthly active user count fell sequentially by 1 million to 63 million.
Productivity and Business Processes was Microsoft’s second-largest business unit by revenue, hitting $10.2 billion in the quarter. Office 365 Commercial saw revenues grow by 12 percent YOY while Office 365 Consumer revenue jumped by 8 percent. Microsoft now has 180 million active monthly users on Office 365 Commercial, up 8 percent, and 34.2 million Office 365 Consumer subscribers, up from 30.6 million a year ago.
Microsoft’s Intelligent Cloud business unit posted revenues of $9.7 billion, up 22 percent YOY. Azure growth was 73 percent, consistent with the past several quarters. Server products and cloud services grew 27 percent. And Enterprise Mobility surpassed 100 million seats in the quarter.
Overall, another solid quarter for the software giant. I’ll pour over the post-earnings conference call for more details.