That said, cloud revenue continues to dominate Microsoft's earnings, raking in nearly $20 billion this past quarter. Office commercial products and cloud services revenue grew 10% driven by Office 365 commercial sales, which were up 42%.
"This quarter we exceeded $20 billion in commercial cloud ARR, outpacing the goal we set just over two years ago", Satya Nadella (pictured), chief executive officer at Microsoft, said in a statement. Instead of the decades-long obsession with Windows sales as the key indicator of Microsoft's performance, focusing - and delivering - on a big cloud services revenue goal showed that the company was ready to move those days into a new era, as he detailed at our GeekWire Summit earlier this month.
Microsoft's first quarterly earnings for 2018 (the company starts its fiscal year in July) continues the trend seen in the last one. Gaming revenue, however, only increased 1 percent, even as Xbox software and services revenue was up 21 percent.
The technology company, based in Redmond, Washington, reported net income of US$6.58 billion, or 84 cents per share, up from US$5.67 billion, or 72 cents per share, a year earlier.
As in previous quarters, the numbers most of us pundits are going to focus on revolve around Microsoft's cloud efforts.
Thor Ragnarok: Taika Waititi WON'T direct Star Wars 'It's determinedly SELF-SERIOUS'
But all that idiosyncratic filmmaking would be nothing without a cast willing to create alongside the director. Reviews for Thor: Ragnarok came out this week, and it's now at 98% on Rotten Tomatoes .
Microsoft returned $4.8 billion to shareholders during its first fiscal quarter through dividends and share buybacks. That's in large part to the continued growth of Microsoft's cloud business.
Revenue gained 12% to $24.54 billion. The rest is a 2% (2% in CC) increase in server revenue.
Microsoft beat analyst expectations, which predicted $23.56 billion in revenues.
MPC (more personal computing) segment derives the majority of its revenues from the PC (personal computing) market. Windows commercial licensing and cloud services revenue increased by 7 percent. Another strong point was Microsoft's Surface hardware revenue, which surged 12% for the quarter after the Surface Laptop was introduced in June.
Surface revenue finally saw some growth, as it had been declining for a while due to the lack of new hardware.