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Microsoft now has three reporting segments: Productivity and Business Processes (covering Office, Exchange, SharePoint, Skype, and Dynamics), Intelligent Cloud (including Azure, Windows Server, SQL Server, Visual Studio, and Enterprise Services), and More Personal Computing (covering Windows, hardware, and Xbox, as well as search and advertising).

The software giant's fiscal fourth-quarter results reported late Thursday were just the latest evidence of its success at moving its business beyond the software typically found on PCs.

Microsoft announced today that it earned a net income of $8.9 billion on revenues of $30.1 billion for the quarter ending June 30.

Chief financial officer Amy Hood said there was "double-digit revenue growth across all segments. anchored by commercial cloud revenue growing 53pc year-over-year to $6.9bn". Intelligent Cloud's operating margins. With cloud demand rising, Microsoft has also said it will continue to invest.

LinkedIn chipped in $1.46 billion, up a whopping 37% over the previous quarter. Azure revenues were up 89 per cent, while enterprise services was up 7 per cent.

Xbox Live active users is 57 million, down two million from the previous quarter but up from 53 million a year ago.


Analyst Patrick Moorhead at Moor Insights & Strategy said Microsoft's results showed healthy growth. Office commercial as a whole grew 38% (35% CC), which is driven by the Office 365 seat growth of 29%. "Satya Nadella and team are hitting on all cylinders at this point".

What is Microsoft 365? Even if the latter is true, several of Microsoft's E3 2018 announcements all but outlined the company's plan to evolve the Xbox platform into something more platform agnostic, starting with its software and services.

Last but not least is Microsoft's "More Personal Computing" division which includes the classics - Windows OEM and commercial as well as Xbox gaming groups and the Surface family of products.

All in all, a familiar tale: cloud services are growing (although Microsoft remains reluctant to offer concrete numbers on Azure), and Microsoft seems to be successfully converting customers away from perpetual licenses and over to Office 365.

Despite Microsoft's reluctance to mention Windows by name as it used to, the company's tried and true work horse continues to buoy the business in some regards.

Revenue was $30.1 billion and increased 17%.


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