Microsoft crushes it with strong cloud revenue in Q3

Microsoft has reported its revenue generated in the third quarter, and the results are in. The commercial cloud is performing phenomenally, and the third quarter results seem to be strong in general. Let’s look at the details and highlight some of the key takeaways.

In concrete numbers, commercial cloud revenue in that period had a $38.4 billion run rate.

The software giant’s Q3 net income equals $8.8 billion. Compared to the numbers from a year ago, that’s a 14% increase.

Looking at the Wall Street expectations, they estimated that Microsoft would report revenue of $29.84 billion, with the expected earnings per share being $1.

As for the commercial cloud revenue in numbers, these were $9.6 billion in Q3. Look at the numbers from one year ago and you’ll notice a 41% increase.

Examining the company’s revenue in the productivity and business processes unit reveals that the number is as high as $10.2 billion. The commercial Office revenue saw a 12% increase.

Intelligent cloud revenue is also on the rise at $9.7 billion, which is an increase of 22% compared to the previous year.

Now for the key points:

– Microsoft Office 365 Consumer recorded 34.2 million subscribers, an increase in revenue of 12%

– Dynamics sales increased by 13% and LinkedIn revenue is up by 27%

– Microsoft Azure recorded a whopping 73% revenue increase in Q3

– Surface revenue saw an increase as well (21%)

– Windows commercial products and cloud services are up by 18%

– Search advertising (minus traffic acquisition costs) is up 12%