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In the fourth quarter, revenue from the Intelligent Cloud unit showed growth of 19% to $11.4 billion. That sum topped revenue of $11 billion from the Productivity and Business Processes (Office, Dynamics, LinkedIn) group.
Microsoft’s More Personal Computing unit had fourth quarter sales of $11.3 billion, up 4% from a year ago. Windows revenue was carried by commercial and OEM products. Surface revenue was up 14%. Windows 10: Has Microsoft cleaned up its update mess? (Spoiler: no)
For the year, Microsoft reported net income of $39.2 billion, or $5.06 a share, on revenue of $125.8 billion. The net income tally was boosted by a $2.6 billion tax benefit.
Microsoft spent $16.87 billion on research and development for fiscal 2019, up from $14.73 billion in fiscal 2018.
See the latest on Microsoft from Mary Jo Foley and Ed Bott.
By the numbers:
LinkedIn revenue was up 25% in the fourth quarter with sessions growth of 22%. Dynamics products and cloud services revenue was up 12%, but Dynamics 365 sales jumped 455. Surface revenue was up 14% due to strong commercial demand. Search advertising sales excluding traffic acquisition was up 9%. There were 34.8 million consumer Office 365 subscribers at the end of the quarter. Gross margins improved at LinkedIn and Office 365. Microsoft’s Intelligent Cloud unit saw operating expenses surge 23% due to GitHub and investments in cloud and AI engineering. XBox Live had 65 million monthly active users at the end of the quarter.
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