Microsoft’s pandemic-era lift shows no sign of slowing, with the software giant reporting a net income of $20 billion on revenues of $45.3 billion in the quarter ending September 30. Net income rose by an incredible 48 percent and revenues soared by 22 percent.
“Digital technology is a deflationary force in an inflationary economy,” Microsoft CEO Satya Nadella said of the quarter. “Businesses—small and large—can improve productivity and the affordability of their products and services by building tech intensity. The Microsoft Cloud delivers the end-to-end platforms and tools organizations need to navigate this time of transition and change.”
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Of Microsoft’s three main business units, Intelligent Cloud (Azure) the superstar, with $17 billion in revenues, a gain of 31 percent year-over-year (YOY). Productivity and Business Processes—e.g. Microsoft 365—delivered $15 billion in revenues, up 22 percent. And More Personal Computing was again the laggard, with the business responsible for Windows, Surface, and Xbox hitting $13.3 billion in revenues, up 12 percent.
A few quick highlights:
Azure was the primary driver of Intelligent Cloud revenues, with Azure revenue growing 50 percent. The Enterprise Mobility installed base grew 30 percent to 196 million seats.
Office commercial products and clouds services grew 18 percent in the quarter, with Office Commercial revenue growth up 23 percent. Office Consumer products and services grew 10 percent, with Office Consumer subscribers increasing to 54.1 million.
Windows revenues from PC makers grew 10 percent in the quarter, which is better than it looks because Microsoft is deferring Windows 11-related revenues. And Windows Commercial products and cloud services revenue grew 12 percent.
Xbox content and services revenue was basically flat, with 2 percent growth. But Xbox hardware revenue grew 166 percent (when compared to the quarter before the Xbox Series X|S launch).
Surface revenue decreased by 17 percent, but one would expect the current quarter to look a lot better, given the recent product launch and the holiday selling period.
blue77star
<p>By selling garbage such as Azure and D365…spent endless number of house dealing with that crap.</p>