Microsoft Posts Monster Numbers for Quarter, Fiscal Year

Posted on July 19, 2018 by Paul Thurrott in Microsoft with 19 Comments

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.