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The above graph represents Microsoft quarterly revenue from external customers, classified by significant product and service offerings. Approximately 27.4% of Microsoft’s total revenue in fiscal Q2 2020 came from the server products and cloud services business. This is followed by Office products and cloud services, Windows, Gaming, Search advertising, LinkedIn, Enterprise Services, and devices.
Microsoft Revenue by Products and Services: In Depth
| Region | Worldwide |
| Source | Microsoft Quarterly reports, SEC Filings |
| Graph ID | 281 |
| Note | Microsoft financial year – from July 1 to June 30 |
Microsoft server products and cloud services revenue increased an appreciable 29.9% YoY in FY Q2 2020, to a record-high $10,119 million.
Microsoft Office products and cloud services revenue also reached an all-time high of $8,983 million during the second quarter of fiscal 2020, with 15.95% YoY increase.
Microsoft Windows revenue in fiscal Q2 2020 clocked $5,593 million, with 17.55% YoY increase. The growth was primarily driven by the year-over-year growth in Windows Commercial (25%) and Windows OEM (18%) revenue. It is important to note that in fiscal Q4 2019 the company generated its highest-ever revenue of $5,792 million from Windows.
Surprisingly, Microsoft gaming revenue in FY Q2 2020 declined a notable 21.38% YoY, to $3,327 million.
The second-biggest growth in revenue came from LinkedIn, which acquired by Microsoft in June 2016. LinkedIn revenue in fiscal Q2 2020 increased an appreciable 24.2% YoY to $2,102 million – the highest-ever till date.
Microsoft Search Advertising revenue also increased a considerable 9.46% YoY in FY Q2 2020 (CY Q4 2019), to $2,163 million.
Microsoft revenue from devices increased a whopping 70.4% QoQ in FY Q2 2020, to a record-high $2,048 million. However, on a yearly basis, the devices revenue increased only 5.13%.
Microsoft Enterprise Services revenue increased 6% YoY to $1,612 million during FY Q2 2020, driven by growth in Premier Support Services.
About Microsoft Corporation: Additional Information
Microsoft Corporation (NASDAQ: MSFT) is an American multinational technology company, founded by Bill Gates and Paul Allen on April 4, 1975. The company is best known for its software products such as Microsoft Windows OSs, Microsoft Office Suite, and web browsers such as Internet Explorer and Microsoft Edge.
Microsoft rose to dominate the personal computer operating system market during the 1980-81 when it formed a partnership with IBM to provide MS-DOS (Microsoft Disk Operating System) for IBM PCs. This implied that for every computer sold by IBM having Microsoft’s OS, a royalty was paid to Microsoft.
On November 20, 1985, Microsoft launched Windows – a graphical operating environment that runs on MS-DOS.
On March 13, 1986, Microsoft had a highly successful initial public offering (IPO) for $21 per share. By the end of the day, the stock price had risen to $35.50, which made Bill Gates an instant multi-millionaire, with 44.8% of the company’s stock.
On May 22, 1990, Microsoft launched Windows 3.0. Interestingly, Microsoft’s Windows 3.0 became the first widely successful version of Windows, from the very first day.
Microsoft has made ten acquisitions worth over one billion dollars: Skype (2011), aQuantive (2007), Fast Search & Transfer (2008), Navision (2002), Visio Corporation (2000), Yammer (2012), Nokia’s mobile and devices division (2013), Mojang (2014), LinkedIn (2016) and GitHub (2018).
Microsoft recently overtook Apple to become the world’s most valuable company, clocking $1 trillion valuation.
Here are some more interesting facts about Microsoft.
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