wordpress blog stats
Connect with us

Hi, what are you looking for?

Microsoft shows strong growth across segments, reports net income of $7.4B

Microsoft reported net income of $7.4 billion for the quarter ended March 31, 2018 (Q3 FY2018), up 35% from the $5.4 billion reported in the corresponding quarter last year. The company’s total revenues for the quarter stood at $26.8 billion, up 16% from $23.2 billion in Q3 FY2017. The tech giant’s operating income also rose by 20% to $8.2 billion this quarter from around $6.7 billion in Q3 FY2017. The company has shown strong growth across most segments, with its cloud business being a major driving force.

Microsoft reports its results in three segments

  • More Personal Computing – This includes Windows, hardware (like the Surface devices), Xbox, as well as search and advertising.
  • Productivity and Business Processes – This covers Office, Exchange, SharePoint, Skype, LinkedIn and Dynamics
  • Intelligent Cloud – This covers Azure Cloud, Windows Server, SQL Server, Visual Studio, and Enterprise Services

More Personal Computing

More Personal Computing revenue was $9.9 billion, up 13% year-over-year from Q3 FY2017, with operating income of $2.5 billion, up 24%. Windows, gaming, Surface, and search all grew. The Windows results are a bit of a mixed bag though. The Corporate-oriented Windows OEM Pro revenue was up 11% but consumer revenue, however, was down 8%, below the general decline of the PC market, due to a shift to lower-priced products like Chromebooks.

Gaming revenue was up 18% YoY to $2.3 billion, with Xbox software and service revenue gaining 24% YoY. There are 59 million monthly active users of Xbox Live, up 13% from last year. Search revenue was up 16%, excluding traffic acquisition costs, with a mix of higher revenue per search and more searches. Finally, Surface revenue was up by 32% year on year, to $1.1 billion. The Surface line of tablets, notebooks and desktop received a hardware refresh this month.

Productivity and business processes

Revenue in Productivity and Business Processes was $9.0 billion up 17% YoY. The Redmond giant also continues to report numbers from LinkedIn both as part of the Productivity group and independently. Microsoft has now owned jobs and business profile platform giving us a chance to examine year over year results. LinkedIn revenue for the quarter was $1.3 billion, up 37%, with a cost of revenue of $0.4 billion, up 11%, and operating expenses of $1.1 billion, up 19%. This means LinkedIn accrued an operating loss of $0.25 billion, which is 35% lower than the corresponding quarter last year.

Commercial Office 365 revenue was up 42%. This growth came from a 28% increase in users, which has now crossed 135 million per month, combined with higher revenue per user. By contrast, traditional Office product revenue was down 15% percent. This reflects a shift in consumers seeing Office as a service rather than a product and moving towards the subscription model instead of buying a one time license.

Advertisement. Scroll to continue reading.

Intelligent Cloud

Cloud group revenue was $7.9 billion, up 17% year on year, with operating income of $2.7 billion, an increase of 24%. Revenue grew in all three segments: product revenue, cloud revenue, and Enterprise Services. Azure revenue was up 93%, and according to the company’s investor presentation, Azure “premium services” revenue was up by “triple digits” for the 15th quarter in a row. In comparison, Amazon’s cloud platform Amazon Web Services’ net sales stood at $5.44 billion for the quarter and delivered operating income of $1.4 billion. Google, via parent Alphabet, just reported $4.35bn revenue this quarter, a 36% gain, for its Other category, which includes Google Cloud Platform and other businesses. Enterprise Services revenue grew by 8%.

Written By

Writes about consumer technology, social media, digital services and tech policy. Is a gadget freak, gamer and Star Wars nerd.

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.



Do we have an enabling system for the National Data Governance Framework Policy (NDGFP) aiming to create a repository of non-personal data?


A viewpoint on why the regulation of cryptocurrencies and crypto exchnages under 2019's E-Commerce Rules puts it in a 'grey area'


India's IT Rules mandate a GAC to address user 'grievances' , but is re-instatement of content removed by a platform a power it should...


There is a need for reconceptualizing personal, non-personal data and the concept of privacy itself for regulators to effectively protect data


Existing consumer protection regulations are not sufficient to cover the extent of protection that a crypto-investor would require.

You May Also Like


Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...


135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...


Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...


By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Your email address:*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ