Microsoft meets expectations with $23.6B in revenue, Azure revenue up 93%

Ibrahim_Gokcen__Chief_Digital_Officer__M

The software giant bought LinkedIn for $26 billion a year ago.

Microsoft has published its Q3 fiscal 2017 earnings report, and the company has made $4.8 billion in net income on $22.1 billion in revenue.

More Personal Computing, which includes Windows, was down 7% year-over-year - a dip that Microsoft blames on its struggling phone business.

Danish shipping company Maersk said Wednesday it would use Microsoft's loud computing platform, Azure, to develop digital products and services across all brands in the A.P. Moller - Maersk Transport & Logistics division.

Under Nadella, Microsoft has boosted its investments in tools for consumers and businesses.

Matched revenue estimates. The company saw non-GAAP revenue figures of $23.557 billion, basically matching our consensus estimate of $23.551 billion.

Overall revenue in its Productivity and Business Processes division soared by 22% (23% CC) to $8.0 billion, helped considerably by a 45% (45% CC) increase in Office 365 commercial revenue. The segment lost $386 million on $975 million in revenue during the quarter.

Intelligent Cloud rose thanks to a 15% increase in server products and cloud services, while its PC group shrank (Windows OEM up 5%; Windows commercial products/cloud services up 6; Surface down 26%; Search ads ex-TAC up 8%; Gaming up 4%).

Windows revenue from PC makers grew 5%.

Like every quarter, Microsoft just reported earnings for the last quarter. "With Microsoft Azure, we are building on the industry's leading cloud platform in terms of innovation, technology, security and regulatory compliance, which is very important as a Swiss financial institution".

The LinkedIn acquisition contributed revenue of $975M. Xbox software and services revenue rose by 7% (8% CC), "driven by continued adoption of digital distribution and a strong game lineup".

To the surprise of no-one, it was another terrible quarter for Microsoft's phone hardware business, with revenue falling by $730 million.

However, after falling by 2% last quarter, Surface revenue dropped by a massive 26% (25% CC), which Microsoft attributed to "increased price competition in the premium 2-in-1 category and product end-of-lifecycle dynamics".

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