Microsoft Delivers Strong Quarter, $7.4 Billion In Profits

Increasingly buoyed by its cloud business, Microsoft reported another strong quarterly performance, this week.

During the first quarter, the tech titan raked in $7.4 billion in profit, which was up 35% year-over-year. Quarterly revenue increased 16% to $26.8 billion, year-over-year.

Most impressive, revenue from Microsoft’s commercial cloud soared 58%, during the period.

“Our results this quarter reflect the trust people and organizations are placing in the Microsoft Cloud,” CEO Satya Nadella stated. “We are innovating across key growth categories of infrastructure, AI, productivity, and business applications to deliver differentiated value to customers.”

Revenue in productivity and business processes was $9 billion -- up 17%, year-over-year. Office commercial products and cloud services revenue increased 14%, which was driven by Office 365 commercial revenue growth of 42%. Office consumer products and cloud services revenue increased 12%, thanks to an addition 30.6 million Office 365 consumer subscribers.



LinkedIn revenue increased 37%, with continued acceleration in engagement highlighted by LinkedIn sessions growth of over 30%.

Revenue in Intelligent Cloud was $7.9 billion -- up 17%, year-over-year.

Specifically, server products and cloud services revenue increased 20%, which was driven by Azure revenue growth of 93%.

Gaming revenue increased 18%, driven by Xbox software and services revenue. Surface revenue increased 32% against a prior year comparable, which was impacted by product end-of-life-cycle dynamics.

Search advertising revenue, excluding traffic acquisition costs, increased 16%, which was driven by higher revenue per search and search volume.

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