Microsoft reports Q3 revenue up 7% YoY to $52.9B, net income up 9% YoY to $18.3B, Office Commercial up 13% YoY, Dynamics 365 up 25% YoY, and LinkedIn up 8% YoY
Microsoft’s commercial software lines were the relative growth engines in this quarter: Office Commercial rose 13% and Dynamics 365 25%, ahead of the company’s 7% overall revenue increase. That mix matters because it ties a larger share of performance to business workflows rather than a single product line.
The following quarter preserved that pattern, with Office Commercial growing 12% and Dynamics 365 26% as company revenue rose 8%, indicating that the commercial-suite momentum extended beyond one reporting period.
First-order effects
Microsoft enters the period with higher revenue and net income, while Office Commercial, Dynamics 365, and LinkedIn each add to growth; Dynamics 365 is the fastest-growing named line.
The results reinforce Microsoft’s ability to monetize business productivity, customer-management, and professional-network products within its commercial portfolio.
Second-order effects
Sustained growth in Office Commercial and Dynamics 365 raises the importance of retaining and expanding enterprise workflow adoption across Microsoft’s suite.
The differing growth rates concentrate attention on higher-growth business applications: Dynamics 365’s 25% increase outpaced Office Commercial and LinkedIn, making application-suite execution more consequential to the commercial mix.
Third-order effects
If this mix persists, Microsoft’s growth profile becomes increasingly shaped by recurring monetization embedded in day-to-day business workflows rather than by any one standalone product category.
The later acceleration in revenue and net income suggests the quarter is part of a broader commercial-software expansion, though these results alone do not establish which product line will sustain leadership.
The trend: Microsoft’s results are one data point in the continued shift toward monetizing interconnected, workflow-native enterprise software portfolios.
Microsoft Cloud run rate revenues to ~$114 billion. To put that number in context, Microsoft's TOTAL revenues were ~$110 billion in fiscal 2018. https://twitter.com/...
And of course, Bing has more than 100 million daily active users and daily installs of the Bing mobile app have grown 4X since launch 😊We look forward to continuing this journey in what is a generational shift in the largest software category - search.
Microsoft basically knocking it out of the park, except for this startling decline: “Windows OEM revenue decreased 28%.” that must be related to the overall pullback in PC sales (Apple feels this, too) https://www.microsoft.com/...
· In 3 months since we made Copilot for Business broadly available, over 10,000 organizations have signed up · We have nearly 33 million MAU of Power Platform, up nearly 50% YoY · Teams usage is at an all-time high and surpassed 300 million MAU this quarter
Interesting @microsoft statements this quarter on gaining share in @Azure, Dynamics, Security, @MicrosoftTeams, @LinkedIn, and @MicrosoftEdge. I like this more aggressive Microsoft. $MSFT
Sharing some momentum metrics Satya noted on our earnings call: · We have more than 2,500 Azure OpenAI Service customers, up 10X QoQ · We have more than 15,000 Azure Arc customers, up over 150% YoY · 76% of the Fortune 500 use GitHub to build, ship, and maintain software
· Nearly 720,000 organizations use Azure Active Directory, up 33% YoY · Nearly 600,000 customers now have four or more security workloads, up 35% YoY · LinkedIn saw record engagement with more than 930 million members
We continue to focus on 3 priorities: 1) Helping customers use the breadth and depth of the Microsoft Cloud to get the most value out of their digital spend
Office 365 and Azure are really the crown jewels of Microsoft's business right now. Both Windows revenue and XBox hardware revenue are down 30% year over year. Windows is suffering due to the PC upgrade cycle as everyone bought new devices during COVID. https://www.theverge.com/.…
$MSFT Q3 2023 Revenue up 7% to $52.9 billion Net income up 9% to $18.3 billion Azure up 27% Office Commercial up 13% Office 365 Commercial up 14% Office Consumer up 1% LinkedIn up 8% Windows OEM down 28% Windows Commercial up 14% Devices down 30% Xbox up 3%