Redmond reports $4.8 billion in net income for Q3 FY 2017

Apr 28, 2017 04:33 GMT  ·  By

Microsoft generated $4.8 billion in net income and $22.1 billion in revenue during the third quarter of the fiscal year 2017, up from the same quarter of the previous year.

The software giant revealed in the earnings report that Office and cloud services were the main catalysts of the growth, while Windows also performed strong, with OEM revenue on the rise.

Revenue in the Productivity and Business Processes increased 22 percent to reach $8.8 billion, with Office commercial products and cloud services also growing 7 percent. As far as Office and cloud services aimed at consumers are concerned, growth was recorded in this unit as well, this time of 15 percent. There are 26.2 million consumer subscribers to Office 365 at the moment.

Additionally, LinkedIn, the business social network that Microsoft purchased last year, generated revenue of $975 million, the company revealed.

Surface revenue dropping

The Intelligent Cloud division also increased 11 percent to reach $6.8 billion in revenue, while the More Personal Computing dropped 7 percent to $8.8 billion.

Surface was the biggest division that lost ground the last quarter, mostly because no new models were launched, with Microsoft revealing a drop of no less than 26 percent. On the other hand, Windows OEM revenue increased 5 percent, while Windows commercial products and cloud services went up 6 percent.

Microsoft’s CEO Satya Nadella obviously praised the cloud business, as the company has transitioned from a software-focused entity to a mobile first, cloud first approach.

“Our results this quarter reflect the trust customers are placing in the Microsoft Cloud,” said Satya Nadella, chief executive officer at Microsoft. “From large multi-nationals to small and medium businesses to non-profits all over the world, organizations are using Microsoft’s cloud platforms to power their digital transformation.”

Microsoft returned $4.6 billion to shareholders, while the net income was $4.8 billion GAAP, and $5.7 billion non-GAAP. The diluted earnings per share were $0.61 GAAP, and $0.73 non-GAAP.