Microsoft Revenue Up, And It’s Not Windows That Brings Home the Bacon

Microsoft today revealed the company’s financial results for FY19 Q2, once again posting record first quarter results thanks to its cloud strategy.

Microsoft revenue reached $32.5 billion, an increase of 12% from the same quarter in the previous fiscal year, while operating income grew 18% to hit $10.3 billion. The net income has thus jumped to $8.4 billion.

Unsurprisingly, the cloud business continues to be the main catalyst of this growth, with Azure alone posting an increase of no less than 76% versus the same quarter a year before.

Server products and cloud services also jumped 24%, with revenue in Intelligent Cloud reaching $9.4 billion.

“Our strong commercial cloud results reflect our deep and growing partnerships with leading companies in every industry including retail, financial services, and healthcare,” said Satya Nadella, CEO of Microsoft. “We are delivering differentiated value across the cloud and edge as we work to earn customer trust every day.”

Surface growth

Microsoft’s Surface business is also growing stronger, so during this quarter it increased revenue by 39 percent. This is mostly thanks to the debut of new models, including the Surface Laptop 2 and the Surface Pro 6.

One particular highlight is the performance of gaming revenue, which increased 8% during the quarter. Xbox software and services revenue alone recorded a growth of 31%. Previously, Microsoft says “third-party title strength” was the main driver of the increase, but no further data was offered this month.

LinkedIn is also becoming a key service for Microsoft after the software giant took over the business social networking service in 2016 for a record $26.2 billion. LinkedIn revenue increased 29% during the quarter.

Windows, in particular, posted modest numbers in the first quarter of the fiscal year 2019. Windows OEM revenue declined 5%, while Windows Commercial products and cloud services revenue jumped 13%.

Cloud services have become Microsoft's top moneymaking machine

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