Microsoft today announced FY Q4 2018 results with a total revenue of $30.1 billion that is a growth of 17% compared to the same time last year. The company’s total operating income was around $10.4 billion witnessing a growth of 35%. It reported a net income of $8.9 billion GAAP and $8.8 billion non-GAAP.
Microsoft’s diluted earnings per share was $1.14 GAAP and $1.13 non-GAAP. The total GAAP results include a net benefit of $104 million related to the Tax Cuts and Jobs Act (TCJA) for the three months that ended on June 30, 2018. Microsoft has also returned a $5.3 billion to shareholders in the form of dividends and share repurchases in the Q4 of fiscal year 2018, an increase of 16% compared to the Q4 of fiscal year 2017.
Revenue in Productivity and Business Processes was $9.7 billion with an increase of 13%. The company’s Office commercial products and cloud services revenue increased by 10%. This is mainly driven by Office 365 commercial revenue which has seen a 38% growth. LinkedIn revenue increased 37% with continued acceleration in engagement that has seen a sessions growth of 41%.
The revenue in Intelligent Cloud was $9.6 billion and increased 23%. Server products and cloud services revenue increased 26% which is mainly driven by Azure revenue growth of 89%. Windows OEM revenue increased by 7% which is driven by OEM Pro revenue growth of 14%. The Windows commercial products and cloud services revenue increased 23% that is mainly driven by an increased volume of multi-year agreements and the mix of products that carry higher in-quarter revenue recognition.
The gaming revenue has also seen a growth of 39% with Xbox software and services revenue growth of 36%. The surface revenue increased 25% and the search advertising revenue excluding traffic acquisition costs increased 17% driven by higher revenue per search and search volume.
Amy Hood, executive vice president and chief financial officer of Microsoft said:
Exceptional sales execution delivered double-digit revenue growth across all segments and strong progress against our strategic priorities, anchored by commercial cloud revenue growing 53% year-over-year to $6.9 billion.
Satya Nadella, the chief executive officer of Microsoft said:
We had an incredible year, surpassing $100 billion in revenue as a result of our teams’ relentless focus on customer success and the trust customers are placing in Microsoft. Our early investments in the intelligent cloud and intelligent edge are paying off, and we will continue to expand our reach in large and growing markets with differentiated innovation.