Microsoft revenue, operating income in Sept quarter 2018

Software major Microsoft today revealed revenue, operating income and net income for the quarter ended September 30, 2018.
Microsoft Cloud for CIOsRedmond, Washington-based software company generated revenue of $29.1 billion (+19 percent), operating income of $10 billion (+29 percent) and net income of $8.8 billion (+34 percent).

Microsoft generated revenue of $8.6 billion (+24 percent) from Intelligent Cloud, $9.8 billion (+19 percent) from Productivity and Business Processes and $10.7 billion (+15 percent) from Personal Computing business.


Office commercial products and cloud services revenue +17 percent
Office 365 commercial revenue +36 percent
Office consumer products and cloud services revenue +16 percent
Office 365 consumer subscribers reached 32.5 million
LinkedIn revenue +33 percent
Dynamics products and cloud services revenue +20 percent
Dynamics 365 revenue +51 percent
Server products and cloud services revenue +28 percent
Azure revenue +76 percent
Enterprise Services revenue +6 percent
Windows OEM revenue +3 percent
Windows OEM Pro revenue +8 percent
Windows commercial products and cloud services revenue +12 percent
Gaming revenue +44 percent
Xbox software and services revenue +36 percent
Search advertising revenue +17 percent
Surface revenue +14 percent

Commercial cloud revenue, which includes Azure sales, reached $8.5 billion, growing at 47 percent from the year-ago quarter. The growth margin for Cloud business rose to 62 percent from 58 percent in the year-ago quarter and 59 percent in the prior quarter. leads in cloud infrastructure services with a second-quarter market share of over 30 percent, according to market research firm Canalys. Microsoft’s share in the global cloud infrastructure services rose to 18 percent from 16 percent in the previous quarter, Reuters reported.

Azure revenue increased 76 percent over the year, slower than the 89 percent rise in the previous quarter.

Microsoft’s focus on fast-growing cloud applications and platforms is helping it beat slowing demand for personal computers that has hurt sales of its popular Windows operating system.

Revenue from Microsoft’s personal computing division, its largest by revenue, rose 14.6 percent to $10.75 billion. The unit includes Windows software, Xbox gaming consoles, online search advertising and Surface personal computers, but gaming is the growth driver with revenue up 44 percent from a year ago.

Microsoft forecast strong revenue for that division in the holiday quarter, of $12.8 billion to $13.2 billion.

Revenue at Microsoft’s productivity and business processes unit, which includes Office 365, rose 18.6 percent to $9.77 billion. Microsoft estimated revenue of $9.95 billion to $10.15 billion for that unit in the current quarter.