Microsoft Corporation (NASDAQ:MSFT) reported its fourth quarter earnings on Thursday which saw revenues of $23.3 billion for the quarter, up from $20.6 billion last year. Operating income came in at $5.3 billion, which was up over 70% from last year’s $3.0 billion. Earnings per share totaled $0.83, higher than the $0.71 per share in profit that was expected by analysts.
At the segment level, despite being down over 1%, Personal Computing led the way with revenues of $8.8 billion. The decline was a result of lower device-related revenues; however this was largely offset by other improvements in the segment. Specifically, Windows sales grew 2% and saw year-over-year increases in revenue of $103 million. Search advertising was up 8%, and gaming revenues also increased by 3% year-over-year. Microsoft Surface revenues, however, were down $20 million, or 2% year-over-year.
The next largest segment was Productivity and Business Processes which were up 21% for a total of $8.4 billion in sales. Revenues from an increase in Office sales (commercial Office 365 sales were up 43%) plus LinkedIn revenues of $1.1 billion were the main drivers of the additional revenue. Dynamics 365 saw its revenue increase by over 74% as well.
Lastly, the Intelligent Cloud segment saw revenues rise over 10% with total revenues reaching $7.4 billion. Sever products and cloud services were up 15% year-over-year, with Azure seeing growth of 97%. However, Enterprise Services were down by 3%.
Cash flow from operations was over $11 billion, up 30% from $8.4 billion last year.
