Windows, Surface Revenue Soars For Microsoft

Microsoft posted its earnings report for the first quarter of the fiscal year 2018, and the results showed strong performance in almost all areas, most particularly cloud, Windows and Surface.

Save for Windows Phone, which is fast becoming a footnote.

In specific terms, Microsoft reported a total of $24.538 billion in revenue for the quarter, which represents a 12% increase from the $21.928 billion the company had to report at the end of the same period a year ago.

Likewise, operating income saw an uptick of 15% to $7.7 billion, while net income came in at $6.6 billion this quarter, after a 16% increase.

CEO Satya Nadella praised cloud services as the main catalyst of the growth:

“This quarter we exceeded $20 billion in commercial cloud ARR, outpacing the goal we set just over two years ago. Our results reflect accelerating innovation and increased usage and engagement across our businesses as customers continue to choose Microsoft to help them transform.”

Perhaps the most interesting highlight here, is in the More Personal Computing side of business, which recorded good performance. According to Redmond, revenue stayed at the highs of $9.4 billion, and remained unchanged year over year.

Windows OEM revenue was up 4%, Surface revenue saw a growth of 12%, mostly due to the Surface Laptop. And while gaming revenue saw an increase of 1%, Xbox software and services put in a solid performance, and posted a growth of 21%.

Obviously, these results are primarily buoyed by the Productivity and Business Processes unit, which again performed strong and returned $8.2 billion in revenue, an increase of 28% year over year.

Office and cloud revenue was up 10%, while Office 365 alone increased 42% in the commercial segment.

Overall, a wholly expected and well deserved showing from Microsoft, with the company continuing to focus on its strengths, as it continues to transform itself from solely being a platform holder to a more diversified enterprise that competes in a number of different areas.

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