Microsoft Revenues Are Up 7 Percent

Microsoft announced that it earned a net income of $18.3 billion on revenues of $52.9 billion for the quarter ending March 31. Those figures represent gains of 9 and 7 percent, respectively, year-over-year (YOY).

“The world’s most advanced AI models are coming together with the world’s most universal user interface – natural language – to create a new era of computing,” Microsoft CEO Satya Nadella said, referencing a technology that didn’t impact the quarter in the slightest. “Across the Microsoft Cloud, we are the platform of choice to help customers get the most value out of their digital spend and innovate for this next generation of AI.”

As for the quarter in question, Microsoft’s successes were somewhat offset by some ongoing concerns in the client side of the house. Intelligent Cloud, the home of Azure and Server, was once again the software giant’s biggest business, with $22.1 billion in revenues, up 16 percent YOY. Productivity and Business Processes, which houses Office, delivered $17.5 billion in revenues, up 11 percent YOY. And More Personal Computing—Windows, Xbox, and Surface—once again tripped over itself, with $13.3 billion in revenues, down 9 percent.

Azure and other cloud services revenue grew 27 percent in the quarter, while Office commercial was up 13 percent and Office consumer rose 1 percent. But Windows revenues from PC makers plummeted by 28 percent, a horrific figure, with Devices (Surface, HoloLens) revenues down an even worse 30 percent. Overall gaming revenue was down 4 percent.

I’ll have a more in-depth look at the quarter in the morning.