Microsoft reports $29.1 billion revenue with 19% YoY growth in Q3 2018, Office products grow 16%

Microsoft has announced third-quarter results ended on 30th September 2018. When compared to the last fiscal year, the revenue is increased by 19% resulting in $29.1 billion, operating income is $10.0 billion with an increase of 29%, the net income was $8.8 billion with 34% increase, and the diluted earnings per share was $1.14 and increased 36%.

Microsoft returned $6.1 billion to shareholders in the form of dividends and share repurchases in the first quarter of the fiscal year 2019, an increase of 27% compared to the first quarter of the fiscal year 2018. The revenue in Productivity and Business Processes was $9.8 billion with an increase of 19%. The Office commercial products and cloud services revenue increased 17% driven by Office 365 commercial revenue growth of 36%.

Office consumer products and cloud services revenue increased 16% with continued growth in Office 365 consumer subscribers to 32.5 million. LinkedIn revenue increased 33% with record levels of engagement with 34% session growth. Dynamics products and cloud services revenue increased by 20% driven by Dynamics 365 revenue growth of 51%. Revenue in Intelligent Cloud was $8.6 billion and increased by 24%.

Windows OEM revenue increased 3% driven by OEM Pro revenue growth of 8%. The Windows commercial products and cloud services revenue increased 12% driven by an increased volume of multi-year agreements. Gaming revenue increased 44% with Xbox software and services revenue growth of 36% mainly from third-party title strength. Search advertising revenue excluding traffic acquisition costs increased 17%. The Surface revenue increased 14%.

Satya Nadella, chief executive officer of Microsoft said:

We are off to a great start in fiscal 2019, a result of our innovation and the trust customers are placing in us to power their digital transformation. We’re excited to help our customers build the digital capability they need to thrive and grow, with a business model that is fundamentally aligned to their success.

Amy Hood, executive vice president, and chief financial officer of Microsoft said:

Our record results for Q1 reflect our commitment to long-term strategic investments and consistent execution to drive revenue growth and operating margin expansion. We see continued demand for our cloud offerings, reflected in our commercial cloud revenue of $8.5 billion, up 47% year over year.