Microsoft has released its financial results for the third quarter of fiscal year 2022, and they are once again impressive. Because of its cloud services, Office, and Windows, the American software behemoth has once again reported double-digit revenue growth.
The company’s revenue increased by 18% in the third quarter to $49.4 billion, while net profit increased by 8% to $16.7 billion.
Microsoft Cloud revenue increased by 32% to $23.4 billion, while revenue for servers and other cloud services increased by 29% during the same period.
The PC market recently experienced a decline, but it had nothing to do with Microsoft Windows laptops and was almost entirely caused by a drop in Chromebook sales. In fact, Windows laptop sales increased slightly over the previous year.
Furthermore, the release of the Series X console, which easily outsold the relatively supply-constrained PlayStation 5, resulted in Xbox’s best sales in the last 11 years.
Windows and Xbox performed 11% better than the previous year, reaching $14.5 billion in Q3. According to CEO Satya Nadella, enterprises are adopting Windows 11 faster than any previous release.
This year also saw an increase in Xbox hardware, content, and Game Pass, as well as LinkedIn and Office services.
Microsft Surface devices are also doing well, with a 13% increase in revenue, which is surprising given the company’s warning of a drop.
The acquisition of Activision Blizzard by Microsoft, which is expected to make it the third largest gaming company in terms of revenue, is not included in these earnings. The agreement is not expected to be finalized until 2023.
Going forward, Microsoft anticipates even more revenue growth in the coming quarters, albeit in the single digits for some businesses.
To read our blog on “Microsoft is riding the cloud, Office, and Windows to continuous growth,” click here.