Microsoft Quarterly Revenue from External Customers, by Products and Services

The above graph represents Microsoft quarterly revenue from external customers, classified by significant product and service offerings. In fiscal Q1 2020, the company posted $33,055 million in revenue, worldwide. Approximately 27.8% of that 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

SourceMicrosoft Quarterly reportsSEC Filings
Last Updated10 November 2019
Graph ID281
NoteMicrosoft financial year – from July 1 to June 30

Microsoft server products and cloud services revenue increased 30% YoY to $9,192 million in FY Q1 2020. However, the revenue declined a notable 5.4% from the previous quarter when the company reported its highest-ever quarterly revenue from the server products and cloud services.

Microsoft Office products and cloud services revenue also increased 11.1% YoY to $8,466 million during the first fiscal quarter of 2020. However, it’s a negligible 0.5% decline from the previous quarter. In fiscal Q4 2019, Microsoft quarterly revenue from office products and cloud services reached an all-time high of $8,511 million.

Microsoft Windows revenue in fiscal Q1 2020 clocked $5,353 million, with 9.2% YoY increase. The growth was primarily driven by the year-over-year growth in Windows Commercial (26%) and Windows OEM (9%) revenue. Surprisingly, that’s 7.6% QoQ decline when compared to the previous quarter. In fiscal Q4 2019, the company generated its highest-ever $5,792 million in revenue from Windows.

Microsoft gaming and devices revenue, both declined in fiscal Q1 2020.

The biggest growth in revenue came from LinkedIn, which acquired by Microsoft in June 2016. LinkedIn revenue in fiscal Q1 2020 increased an appreciable 24.8% YoY to $1,909 million – the highest-ever till date.

Microsoft Enterprise Services revenue increased 6.6% YoY to $1,545 million during FY Q1 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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