Microsoft Posts Monster Numbers for Quarter, Fiscal Year

Microsoft announced today that it earned a net income of $8.9 billion on revenues of $30.1 billion for the quarter ending June 30. Revenues for the fiscal year, which also ended June 30, were $110.4 billion.

“We had an incredible year, surpassing $100 billion in revenue as a result of our teams’ relentless focus on customer success and the trust customers are placing in Microsoft,” CEO Satya Nadella said in a prepared statement. “Our early investments in the intelligent cloud and intelligent edge are paying off, and we will continue to expand our reach in large and growing markets with differentiated innovation.”

The results—for both the quarter and the entire fiscal year—can only be described as astonishing, especially when you consider that Microsoft is in the midst of a transition from its old business model to one that is focused on cloud computing.

Looking at Microsoft’s individual businesses, we see the following.

More Personal Computing continues to be the firm’s biggest business, with $10.8 billion in revenues, up 17 percent year-over-year. Windows revenue from PC makers jumped 7 percent, and Surface revenue was up 25 percent, and gaming revenue skyrocketed by 39 percent.

Productivity and Business Processes—Office, Dynamics, LinkedIn—saw revenues jump 13 percent in the quarter to $9.7 billion. Office 365 commercial revenue grew 38 percent.

Microsoft’s Intelligent Cloud business unit, which consists largely of Azure, Server, and enterprise services, saw revenues grow 23 percent to $9.6 billion. But the star, as always, was Azure, which grew revenues 89 percent.

As always, I will further analyze these results in tomorrow’s edition of Short Takes.


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Conversation 19 comments

  • BoItmanLives

    19 July, 2018 - 4:32 pm

    <p>"differentiated innovation" – add another square to the nadella corporate-bullshit bingo card!</p><p><br></p>

    • paulirl

      19 July, 2018 - 5:39 pm

      <blockquote><a href="#293824"><em>In reply to BoItmanLives:</em></a></blockquote><p>Thank you! I am literally crying and my sides hurt…</p><p><br></p><p>What is less funny is that this new found financial success is at the expense of all the people who really love MS products (I'm writing this on my Chromebook, my W10 PC is now an expensive paperweight).</p>

      • cayo

        19 July, 2018 - 5:58 pm

        <blockquote><a href="#293874"><em>In reply to paulirl:</em></a></blockquote><p><br></p><p>Funny how this site became a playground for Google fanboys. Judging by the comments, Chromebook is the most popular computer, yet you can't see one in the wild. </p>

        • fggbd

          19 July, 2018 - 11:29 pm

          <blockquote><a href="#293878"><em>In reply to cayo:</em></a></blockquote><p>Or its a site for the every day folks now and not the niche Windows fanboys who live in the MS bubble and only use legacy MS products.</p>

          • Andi

            20 July, 2018 - 10:26 am

            <blockquote><a href="#293947"><em>In reply to fggbd:</em></a></blockquote><p>It is open to everyone but it still has a Microsoft focus. Paul Thurrott's fame is Supersite for Windows after all.</p>

        • EcceLex

          20 July, 2018 - 4:13 am

          <blockquote><a href="#293878"><em>In reply to cayo:</em></a></blockquote><p>Living in France, I never saw one in the wild, not even in a shop. I wonder if it will ever grow outside the US.</p>

          • Maelstrom

            23 July, 2018 - 7:49 am

            <blockquote><em><a href="#293970">In reply to EcceLex:</a></em></blockquote><p>You'll see some at FNAC (i.e., a French mix of BestBuy and Barnes &amp; Noble for you guys in the US) and that's mostly it.</p>

        • Stooks

          20 July, 2018 - 7:18 am

          <blockquote><a href="#293878"><em>In reply to cayo:</em></a></blockquote><p>My kids, all 3 of them used Chromebooks in grade/middle school. They and everyone else hated them. </p><p><br></p><p>Their high schools use Windows 10 computers and Office 365. </p>

        • Daekar

          20 July, 2018 - 7:59 am

          <blockquote><a href="#293878"><em>In reply to cayo:</em></a></blockquote><p>I agree. I've seen 1 Chromebook in the wild, several years ago, owned by a hipster in an "organic warm fuzzy eat local be local" type of coffee shop. I have personally never encountered anyone or any business that uses them, although I have heard muggles in the market for a laptop dismiss them out of hand as useless.</p>

        • shameermulji

          21 July, 2018 - 6:32 pm

          <blockquote><em><a href="#293878">In reply to cayo:</a></em></blockquote><p>That's because the vast majority of Chromebooks' success is in the education (specifically the K-12 segment) sector. Outside of that it's a non-event.</p>

  • jwpear

    Premium Member
    19 July, 2018 - 5:39 pm

    <p>Nice! Need to check my Microsoft stock value.</p>

  • MikeGalos

    19 July, 2018 - 11:16 pm

    <p>The old measure used to be "how many of Microsoft's businesses pull in a Billion dollars per year.</p><p>It would be interesting to see that list for this Fiscal Year.</p>

    • MutualCore

      20 July, 2018 - 12:52 am

      <blockquote><a href="#293944"><em>In reply to MikeGalos:</em></a></blockquote><p>Soon it will be 'how many Microsoft's businesses pull in 10 billion dollars per year'.</p>

  • EcceLex

    20 July, 2018 - 5:14 am

    <p>I find Microsoft very impressive because they do not rely on a single business (ads) or product (iPhone) to fuel their growth</p>

    • 2ilent8cho

      20 July, 2018 - 6:44 am

      <blockquote><a href="#293978"><em>In reply to EcceLex:</em></a></blockquote><p><br></p><p>Apple is not reliant on a single product (iPhone) , last quarter the Mac made 5.9 billion in revenue, the iPad 4.1 billion and the other products category was 3.9 billion. That is not pocket change. So just the Mac sales alone make up 1/6th of Microsoft's revenue.</p>

      • Stooks

        20 July, 2018 - 7:15 am

        <blockquote><a href="#293982"><em>In reply to 2ilent8cho:</em></a></blockquote><p>FACT – If the iPhone tanked overnight Apple would go out of business. </p><p><br></p><p>Same for Google with ads. </p>

      • Andi

        20 July, 2018 - 10:23 am

        <blockquote><a href="#293982"><em>In reply to 2ilent8cho:</em></a></blockquote><p>Macs are indeed selling, however seeing the latest mac hardware refreshes it seems that they are not selling on quality.</p>

        • Stooks

          20 July, 2018 - 1:21 pm

          <blockquote><a href="#294015"><em>In reply to Andi:</em></a></blockquote><p>Throttlebook Pro can heat a room in the winter. </p><p><br></p><p>Macbooks have ave turned into status symbols first that can also do some light computing. </p>

          • MutualCore

            20 July, 2018 - 6:14 pm

            <blockquote><a href="#294085"><em>In reply to Stooks:</em></a></blockquote><p>Also a crappy keyboard.</p>


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