The above graph represents the yearly distribution of Microsoft products and services revenue from external customers. In fiscal 2019, Microsoft recorded 14% YoY growth in its annual revenue, clocking $125,843 million ($125.8 billion). Nearly 25.9% of the company’s revenue came from server products and cloud services. This is followed by Office products and cloud services, Windows, Gaming, Search advertising, LinkedIn, Enterprise services and devices.
Microsoft Annual Revenue by Products and Services:
| Region | Worldwide |
| Source | Microsoft Annual reports, SEC Filings |
| Last Updated | 11 November 2019 |
| Graph ID | 282 |
| Note | Microsoft financial year – from July 1 to June 30 |
Microsoft revenue from server products and cloud services increased an appreciable 24.8% YoY in fiscal 2019, to a record $32,622 million ($32.6 billion). The growth was largely driven by Azure revenue growth of 72% YoY.
Microsoft Office products and cloud services revenue also reached an all-time high of $31,769 million ($31.3 billion), with 12.2% YoY increase.
Windows revenue increased considerably small 4.5% YoY in fiscal 2019, clocking $20,395 million ($20.4 billion). This largely driven by the revenue growth in Windows Commercial and Windows OEM, offset by a decline in patent licensing.
Microsoft Gaming revenue increased significantly from $10,353 million in FY 2018 to $11,386 million in FY 2019. The 10% YoY in the gaming revenue was primarily driven by Xbox software and services growth of 19%.
Microsoft search advertising revenue in fiscal 2019 amounted to $7,628 million, representing 8.8% YoY growth.
Microsoft annual revenue from LinkedIn increased an astonishing 28.4% YoY in fiscal 2019, to $6,754 million. Microsoft acquired Linkedin in 2016 for $26.2 billion. The deal is known as the costliest acquisition by Microsoft till date, overshadowing the $19 billion that Facebook paid to acquire WhatsApp.
About Microsoft: 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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