The Microsoft fiscal Q1 2020 (ending 30 September 2019) results see revenues reach $33.1 billion, a 14% Y-o-Y increase, while operating income is up by 27% Y-o-Y to $12.7bn. Net income totals $107bn, a 21% Y-o-Y increase.
“The world’s leading companies are choosing our cloud to build their digital capability,” CEO Satya Nadella says. “We are accelerating our innovation across the entire tech stack to deliver new value for customers and investing in large and growing markets with expansive opportunity.”
Driving results for the quarter is the cloud, with the commercial segment generating $11.6bn in revenue, up 36% Y-o-Y. Intelligent Cloud revenue totals $10.8bn, a 27% Y-o-Y increase, with server products and cloud services revenue increasing by 30% Y-o-Y thanks to Azure growth of 59% Y-o-Y. Enterprise services revenue, on the other hand, is up by 7% Y-o-Y.
Productivity and Business Processes results are also on the up, as revenues see 13% Y-o-Y growth to reach $11.1bn. LinkedIn (25% Y-o-Y) and Dynamics 365 (41% Y-o-Y) revenue growth are notable highlights, while Office 365 Consumer subscribers total 35.6 million. Speaking of Office, Consumer revenues are up by 5% while Commercial revenues see a 13% Y-o-Y increase thanks to Office 365 Commercial revenue growth of 25% Y-o-Y.
Results are less impressive on the consumer side of things. More Personal Computing revenue totals $11.1bn, a 4% Y-o-Y increase, with Surface revenue dropping by -4% Y-o-Y and Xbox content and services remaining essentially flat. Windows OEM revenue does see a 9% Y-o-Y increase, while Windows Commercial products and cloud services are up by 26% Y-o-Y.