Microsoft has announced financial reports for FY fiscal year (the third quarter of the 2016 calendar year), Q1 2017. The company has recorded $20.5 billion in revenue and $4.7 billion in net income.
Microsoft’s phone revenue declined 72% while OEM revenue was flat year-over-year. On the other hand, Surface revenue hit $926 million in the quarter, up 38 percent from the $672 million last year. Both Surface Pro 4 and Surface Book will have helped push that revenue up. Gaming revenue declined 5% (down 4% in constant currency) driven by lower Xbox console revenue offset by higher Xbox software and services revenue. Companies Azure revenue grew 116% (up 121% in constant currency) with Azure compute usage more than doubling year-over-year.
Satya Nadella, chief executive officer at Microsoft said,
We are helping to lead a profound digital transformation for customers, infusing intelligence across all of our platforms and experiences. We continue to innovate, grow engagement, and build our total addressable market.”