Bottom line: Despite being one of the largest companies in the world, Microsoft isn’t slowing down. The Windows maker has released its fiscal quarterly and yearly financial results, which beat expectations and marked its first $100+ billion year.
Microsoft’s overall revenue for the fourth fiscal quarter reached $30.1 billion, up 17 percent YoY and beating analysts’ predictions of $29.2 billion. Net income, meanwhile, was up 10 percent to $8 billion.
Results were just as impressive for the full fiscal year, which saw revenue hit a record-breaking $110.4 billion, up 14 percent from the $96.6 billion in FY2017. Net income, however, was down 34 percent to $16.6 billion, but that was due to the tax charge companies faced when they brought their overseas cash back to the US under the Trump administration’s tax reforms. Without the charge, yearly income was up 17 percent to $35.1 billion.
As usual, it was Microsoft’s commercial cloud segment that covers Azure, Office 365, and Dynamics 365 that was responsible for a huge chunk of the revenue. It was up 23 percent YoY to $9.6 billion for the quarter, and reached $32.2 billion for the year, marking a 15 percent increase.
The More Personal Computing group, which includes Windows, Surface and Xbox, was up 17 percent to $10.8 billion for the quarter ($42.2 billion for the year). Breaking down the category shows the Surface line performing well with revenue jumping 25 percent, Windows revenue from PC makers increasing 7 percent, and gaming revenue up a massive 39 percent.
“We had an incredible year, surpassing $100 billion in revenue as a result of our teams’ relentless focus on customer success and the trust customers are placing in Microsoft,” said Microsoft CEO Satya Nadella.
“Our early investments in the intelligent cloud and intelligent edge are paying off, and we will continue to expand our reach in large and growing markets with differentiated innovation.”