Microsoft (NASDAQ:MSFT) reported the results of its fiscal third quarter (which ended March 31) on Wednesday, and the tech bellwether proved once again that its combination of business software and cloud-computing continues to gain ground. Investors were enthusiastic about the results, pushing Microsoft’s market cap briefly above $1 trillion on the day following the release.
The tech giant reported revenue of $30.6 billion, up 14% year over year. This again beat the high end of both Microsoft’s guidance and analysts’ consensus estimates, which topped out at $30.1 billion and $29.8 billion, respectively. Much of the company’s revenue gains worked their way down to the bottom line, with net income of $8.8 billion that increased 19% year over year, resulting in earnings per share of $1.14, up 20% — also easily surpassing expectations of $1.00.
Microsoft continued to demonstrate solid growth across each of its segments, something that has become common practice for the company in recent years.
The productivity and business processes segment generated revenue of $10.2 billion, up 14% year over year and 15% in constant currency. Several smaller businesses within the segment produced notable results. LinkedIn revenue grew 27% year over year and 29% in constant currency, driven higher by record levels of engagement, as sessions grew by 24%. Both commercial and consumer versions of Office did well, growing 12% and 8% year over year, respectively. Dynamics products held their own, climbing 13% compared to the prior-year quarter.
Intelligent cloud produced the most impressive gains, growing to $9.7 billion, up 22% year over year. Within the segment, server products and cloud services jumped 27% compared to the prior-year quarter. Azure again took the spotlight, with revenue up 73% year over year and 75% in constant currency. Enterprise services edged higher, with revenue up 4%.