As its cloud business continues to soar, Microsoft just reported better-than-expected fiscal fourth quarter earnings. For the quarter ended June 30, the software giant reported revenue of $33.7 billion, which was up 12% year-over-year.
Year-over-year, operating income was up 20% to $12.4 billion, while net income was 49% to $13.2 billion.
“It was a record fiscal year for Microsoft,” said CEO Satya Nadella, said Thursday.
More than any other category, Microsoft’s cloud business continues to pay dividends.
During the fiscal fourth quarter, “commercial cloud revenue increased 39% year-over-year to $11.0 billion, driving our strongest commercial quarter ever,” Amy Hood, executive vice president-CFO, Microsoft, said on Thursday.
Revenue in productivity and business processes was $11.0 billion and increased 14% -- up 17% in constant currency.
Office commercial products and cloud services revenue increased 14% -- up 16% in constant currency -- driven by Office 365 Commercial revenue growth of 31%.
Office consumer products and cloud services revenue increased 6% -- up 8% in constant currency -- and Office 365 consumer subscribers increased to 34.8 million.
LinkedIn revenue increased 25% -- up 28% in constant currency -- with record levels of engagement highlighted by LinkedIn sessions growth of 22%
Dynamics products and cloud services revenue increased 12% -- up 15% in constant currency -- driven by Dynamics 365 revenue growth of 45%.
Revenue in Intelligent Cloud was $11.4 billion and increased 19% -- up 21% in constant currency.
Server products and cloud services revenue increased 22% -- up 24% in constant currency -- driven by Azure revenue growth of 64%.
Enterprise services revenue increased 4% -- up 6% in constant currency.
Also of note, search advertising revenue excluding traffic acquisition costs increased 9% -- up 10% in constant currency.On flipside, gaming revenue declined 10% -- down 8% in constant currency -- with Xbox software and services revenue down 3%.