14 DAY TRIAL // Microsoft revealed the financial results for the fourth quarter of the fiscal year 2018, posting a significant increase in several businesses, including Surface and gaming.
The software giant reported revenue of $30.1 billion, up 17 percent from the same quarter a year ago, while operating income reached $10.4 billion, an increase of 35 percent year over year. Net income was $8.9 billion.
There are several units that performed particularly well, including Surface, which increased revenue by 25 percent, and according to the company itself, this was only possible thanks to the strong performance of the latest models. Microsoft has recently launched the Surface Go, a low-cost model priced at $399, but the device isn’t yet included in these numbers.
Gaming revenue also increased by no less than 39 percent, and while Microsoft doesn’t disclose console games, we do know that the Xbox software and services unit alone recorded a growth of 36 percent.
Windows and the PC market
Needless to say, cloud services were once again one of the main growth engines for the software giant. Revenue in the Intelligent Cloud division increased 23 percent to reach $9.6 billion, with Enterprise Services up 8 percent and server products and cloud services also improved by 36 percent. Azure revenue growth reached an impressive level at 89 percent.
Third-party data has recently shown that the PC market was recovering, and judging from Microsoft’s figures, Windows 10 not only that contributed to this performance, but it also benefited from it.
Windows OEM revenue increased 7 percent thanks to OEM Pro revenue growth of 14 percent, according to Microsoft data. At the same time, Windows commercial products and cloud services increased 23 percent, “drive by an increased volume of multi-year agreements and the mix of products that carry higher in-quarter revenue recognition.”
For the fiscal year 2018, Microsoft increased revenue by 14 percent to $110.4 billion, while operating income is up 21 percent to $35.1 billion.