Microsoft has been making a few inroads in the last quarter. They announced their first quarterly earnings for 2018. The company begins their fiscal year in July and was a growth from their last one. Overall, the company reported a $24.5 billion in overall revenue. That is a 12 percent increase from this time last year.
Some of that is being linked to the rise in sales of the Surface line, which has been nonexistent in the last few years. After a decline last quarter, Microsoft saw a 12 percent increase in year-over-year. Much of that is being directed at the release of the Surface laptop and the Surface Pro.
However, it seems their cloud revenue is their big drawing power. Microsoft is reporting almost $20 billion this past quarter. Azure dominates with a 90 percent revenue increase from this time last year. Their revenue from Office 365 saw increases, as well. Their commercial Office 365 saw a 42 percent increase, while consumer Office 365 has 28 million subscribers.
It wasn’t all good news for Microsoft. Revenue from their personal computing markets remains stagnant. Windows OEM revenue went up just four percent and commercial Windows and cloud services increased by seven percent. Gaming revenue only increased by one percent. While Xbox consoles are not moving, software for the console increased by 21 percent. That should change with the Xbox One X release in November.
“Our results reflect accelerating innovation and increased usage and engagement across our businesses as customers continue to choose Microsoft to help them transform,” said Nadella in a statement.