Microsoft reported revenue of $30.6 billion (+14 percent), operating income of $10.3 billion (+25 percent) and net income of $8.8 billion (+19 percent) for the third quarter ended March 31, 2019.
“Leading organizations trust the Microsoft cloud. We are accelerating our innovation across the cloud and edge so our customers can build the digital capability increasingly required to compete and grow,” said Satya Nadella, CEO of Microsoft.
Under CEO Satya Nadella, the company has spent the past five years shifting from reliance on its once-dominant Windows operating system to selling cloud-based services, Reuters reported.
The Redmond, Washington-based company said Microsoft cloud revenue rose 41 percent to $9.6 billion.
Azure, Microsoft’s flagship cloud product, competes with market leader Amazon Web Services (AWS) to provide computing power to businesses.
Microsoft Chief Financial Officer Amy Hood told investors that Microsoft expects to see growth in the fiscal fourth quarter in the business divisions in charge of Azure and Office 365, an online version of its longtime productivity software.
Microsoft generated revenue of $10.2 billion (+14 percent) from Productivity and Business Processes.
Microsoft’s Office Commercial products and cloud services revenue increased 12 percent driven by Office 365 Commercial revenue growth of 30 percent.
Microsoft’s Office Consumer products and cloud services revenue increased 8 percent and Office 365 Consumer subscribers increased to 34.2 million.
LinkedIn revenue increased 27 percent. The company did not reveal the specific revenue of LinkedIn.
Microsoft’s Dynamics products and cloud services revenue increased 13 percent driven by Dynamics 365 revenue growth of 43 percent.
Revenue in Intelligent Cloud increased 22 percent to $9.7 billion.
Microsoft’s server products and cloud services revenue increased 27 percent driven by Azure revenue growth of 73 percent.
Enterprise Services revenue increased 4 percent.
Revenue in More Personal Computing increased 8 percent to $10.7 billion.
Windows OEM revenue increased 9 percent. Windows Commercial products and cloud services revenue increased 18 percent.
Surface tablet revenue increased 21 percent. Gaming revenue increased 5 percent driven by Xbox software and services revenue growth of 12 percent.