Microsoft has released its financial report for the third quarter of fiscal year 2022. The company again managed to grow by double digits. The software giant’s revenue was $49.4 billion and net income was $16.7 billion. Revenue was up 18% and profit was up 8% year-over-year. Microsoft again points to cloud revenue as the most important factor in shaping this table. It said server and cloud revenue grew 29 percent, while Microsoft Cloud brought the company $32.4 billion. Again, that’s a 32 percent increase.
There was talk that things might not go well for Microsoft this quarter. There have been many signs to support that notion. Although the PC market, which peaked during the pandemic period, has begun to shrink, Microsoft’s financial report confirms that the decline has hit Chromebooks rather than Windows computers.
Revenue for its “more personal programming” unit, which includes Windows and Xbox, rose 11% to $14.5 billion, according to Microsoft’s filings. Revenue from Windows device makers also rose 11%. The company’s CEO, Satya Nadella, pointed out that the adoption rate of Windows 11 by institutions is much faster than other versions.
Xbox hardware revenue was up 14% and content and services revenue was up 4%. Xbox Game Pass subscriptions and increased sales of original games were said to have been effective in this growth. The company’s revenue from games rose 6% to $3.74 billion. Nadella said that 10 million people have experience playing games through Microsoft’s cloud service.
The company, which bought Activision Blizzard earlier this year, again reiterated that it expects the process to be completed next year. LinkedIn, which was Microsoft’s largest acquisition deal before Activision Blizzard, also rose 34%. Revenue growth in the Surface device unit was 13%.
In these days of a return to the physical desktop, Microsoft Office also managed to maintain its cloud revenue growth. A 17 percent increase in revenue was recorded in the Productivity and Business Processes unit. Office’s corporate revenue grew 12 percent, while individual revenue grew 11 percent. Smart Cloud revenue grew 26 percent year-over-year to $19.1 billion.