14 DAY TRIAL // Microsoft has announced its financial results for the quarter ended March 31, revealing that revenue reached $30.6 billion, an increase of 14% year-over-year.
Additionally, the software giant says the operating income increased 25% to total $10.3 billion, while the net income jumped 19% to $8.8 billion.
Unsurprisingly, the biggest growth took place in the Intelligent Cloud division, whose revenue increased 22% to $9.7 billion. Server products and cloud services revenue have once again been Microsoft’s biggest growth engine with a 27 percent revenue boost, while Azure itself posted an increase of no less than 73 percent.
On the other hand, consumer products also performed particularly well, with total revenue of $10.7 billion and an increase of 8 percent. Windows OEM revenue increased 9 percent, while Windows commercial products and cloud services revenue increased 18 percent.
Windows 10 adoption is improving, and with Windows 7 support coming to an end in January 2020, the company expects this growth to continue in the next quarter. Consumers and enterprises are likely to purchase new computers, driving the PC business growth towards the end of the year.
Surface going up
Other good news is that Surface revenue jumped 21 percent too, despite Microsoft not releasing any new products during the quarter. However, the latest-generation Surface Pro and Surface Book most likely sold well after their release in the fall of 2018.
“Demand for our cloud offerings drove commercial cloud revenue to $9.6 billion this quarter, up 41% year-over-year,” said Amy Hood, executive vice president and chief financial officer 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.”
Office is one again one of Microsoft’s top cash cows, with the consumer division (paired with cloud services revenue) increasing 8 percent. There are 34.2 million Office 365 consumer subscribers, Microsoft says. Office Commercial products and cloud services also jumped 12 percent.