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Microsoft reports FY16 Q3 results, generated $20.5 billion in revenue

Microsoft has reported its earnings for the third fiscal quarter of 2016, noting GAAP revenues of $20.5 billion, compared to $21.7 billion from the same period a year ago.

Microsoft's press release (opens in new tab) stated that GAAP net income came in at $3.8 billion, compared to $4.985 million from the same period a year ago.

"Organizations using digital technology to transform and drive new growth increasingly choose Microsoft as a partner," said Satya Nadella, chief executive officer at Microsoft. "As these organizations turn to us, we're seeing momentum across Microsoft's cloud services and with Windows 10."

In Microsoft's various financial departments, its Productivity and Business Processes went up 1% (up 6% in constant currency) to $6.5 billion. Intelligent Cloud went up 3% (up 8% in constant currency) to $6.1 billion, while More Personal Computing grew by 1%.

69 Comments
  • Wow, profits down 20%. Android first, iOS first is really working well!
  • Bro, do you even calculate? It's 5.6%, not 20%.
  • Bro, he said profits, you are calculating revenues which is not profits.  
  • My mistake. I didn't see that figure there hiding under the image. Also, knee-jerk reaction to people just coming here to be dicks.
  • They are in the middle of transitioning.  Whenever that happens you always take an initial hit.  Giving away Windows for free isn't going to increase revenue in the short term. The key metrics are: Suface revenue is up by 61% and Azure revenue is up 120%.  That is where their focus is and it is showing.
  • In what reality is it Andorid first, iOS first? Just because some apps came to them first rather than to an unfinished OS?
  • I wish people would really stop saying an unfinished OS. No software product is ever finished when it gets released. That's why there are updates throughout it's life cycle...
  • Maybe you are looking at the wrong line. Windows Phone revenues dropped by 47% vs. same quarter last year.  Microsoft sold 2.3 million Lumia handsets during the entire January-March quarter. For frame of reference, Apple sells that many Apple 6's in less than 3-4 days. (hedging till Apple releases their quarter numbers)
  • Yeah, I wonder how much more time Nadella has.
  • Loads, he has transformed the internal mindset in ms for the better. They have a future now and are no longer living in the past. Ms is what i develop for and well happy with the changes Posted from an Oric-1
  • Phone revenue declined 46% in constant currency   Which was expected with the writing off of Microsoft Mobile and the death of Windows Phone. Oh no, wait. I'm sure I'll now have a 10 part editorial explaining how revenue actually increased 46% because there's a masterplan for mobile and that, in fact, the only one dead is myself. Which makes me obviously a zombie. Which is darn cool.   On the other hand Surface revenue increased 61% in constant currency driven by Surface Pro 4 and Surface Book which is good news. I would like to know how much of the revenue is being generated by the Surface Book and how much by the SP4. That because, being the SP4 such a minor upgrade over the SP3, I assume it won't sell as much.
  • Why do you spend so much time commenting about a supposedly dead platform?
  • probably because it is a comments section of an article regarding MS in general which includes WPs.  
  • I wasn't talking about just this one comment, obviously.
  • Necrophilia.
  • lol
  • Because he is a troll, a big Android supporter and only shows up to get in his jabs and to mock those who decide to use something other than his favorite.
  • Don't feed the zombies, you'll end up one of them. Posted from my Lumia 950
  • Windows Central is just about the only marketing arm of Windows Phone left.  ;) But everyone loves a winner, the 2-in-1 category is rocking and rolling.  Surface revenues increased by $410 million or 15% quarter over quarter.
  • Did you you check the latest Gartner and IDC numbers? 2-in-1 category is hardly rocking. There were only about 4 million Windows tablets shipped during last quarter which is less than the decline of the desktop numbers. So even with 2-in-1s included the Windows platform is losing a lot of users currently.
  • Hardware is a very competitive environment.  Double digit revenue growth in a hardware line is a reason to celebrate.  HP and Lenovo would jump for joy and be doing backflips if their revenues from their PC lines were up double digits.
  • yes. you have told the truth. Its a very bitter truth that actually Windows platform as a whole is losing ground everyday a bit by bit. On the PC part Mac is increasing very slowly at least from the casual/research persons level. and more casual PC users are gradually more leaning towards cheap android tabs or ipads. XBO has lost its glory to PS4 compare to XB360 vs PS3 on those days. and its better not to talk about mobile at this situation. So only hope remains only on convertibles/2 in 1 or AR/VR or upcoming if any surface phone. Sent from Windows Central on Windows 10 and Windows 10 Mobile on Lumia 525
  • People still use WP. Apps still get updated for WP. New devices are still coming out. They are still being sold. That does not constitute dead.
  • People still use BB10. Apps still get updated on BB10. BB10 devices are still being sold. BB10 is dead. It's exactly the same thing on WP and its 1% marketshare (and decreasing).
  • To many people, Elvis is not dead either.
     
  • Android selling well = W10M still far from dead. Lumia 640 XL Dual SIM
    Build 10.0.10586.218
  • If you think the state of Blackberry development and apps is approximate to the Windows Store for phones, then you are living in another reality. Plus the fact, Blackberry needs phone devs. Microsoft just needs Store devs, which is why they were giving Windows desktop away free. You analogy is broken and weak, like your trolling.
  • This is news? We already knew they wrote off the epic disaster that was Nokia's phone buisness & they are drastically pulling back. They are not spending a dime on advertising either. All these oems launching WPs all of the sudden is not a coincidence, MS doesn't want to be 95% of the WP market anymore. What is the point of selling 8-10M phones a qtr when your losing money on every device sold?
  • Microsoft will always be 95% of the Wp market. No one else is going to make them in any noticeable quantity. Posted via the Windows Central App for Android
  • In the days of Windows Phone that was too true, but with the strategy shift for Windows 10 and mobile I see it heading in the other direction, quite a few OEMs have jumped on board already and Microsoft is supporting them and stepping back so they can claim their share. In my view though we really need a major push from Samsung before the OS global share will gain any serious traction and after seeing them push a new Windows tablet under the galaxy line I see a Galaxy phone running Windows 10 with a strong marketing push a good possibility, definitely won't be this year though, most likely not until after Redstone 2 is in the wild. Posted from my Lumia 950
  • What do you mean by death? And why is it so important to you to be calling it like that? (serieus question) 
  • Dead as in, with no future. WP userbase has been depleating ever since Nokia left (which was more than expected and I said it would happen back in September 2013, though no one believed me), developers have had an indiferent position towards the platform and even the entire UWP hasn't be received with waves of excitement. As such, I think it's important for people who still insist it's not dead to accept it. WP users at this point are like BB10 users of even Symbian users. They simply refuse to accept the platform is dead. And because of that, none of them moves forward. BlackBerry recently eventually decided to simply put an end to those fan-denials and euthanized BB10. The sooner Microsoft does the same with Windows Phone (or W10M, whatever you want to call it) the better. It will stop losing Microsoft money and resources and it will eventually push forward the vision of a true platform-agnostic Microsoft. You CAN have an Android phone running only on Microsoft's services. I have one (actually 3 but that's beside the point). There's absolutely zero that WP has to offer, even when it comes to Microsoft services. It's a dead platform. It has no future. They tried (not very hard) and they failed. It's time to move on.
  • I guess Microsoft needs to get back with the Nokia Team and build something new and good with them. I think if they both work again together there would scope for innovation.
  • I totally AGREE!
  • Nokia already tried Microsoft. Why repeat past mistakes? Posted via the Windows Central App for Android
  • I for one thing the worst thing MS did was purchase Nokia (Lumia/Phone side), they should have done someting on thier own.  At the time they signed on with Nokia, Nokia was already somewhat of a boat anchor IMAO.  Nokia has one remaining business left, networks.  Stock price is in the crapper (though its never been high for the last 5 years or so...), and I just do not see them rising from the preverbial phone ashes with some lame Android device. MS has the cash, but sometimes I wonder why they do things... what did they get from Nokia... a name "Lumia".  They already had the "surface" brand name... use that, lot cheaper... :)
  • In a lot of ways I agree with you.  Actually, I think Nokia management played Ballmer beautifully.  Had Windows Phone become a success, they would have been the biggest fish in the pond.  But when it failed - or let's say had less than stellar success - they were able to put him in a position where he was compelled to buy the Nokia phone group, factories and all, to avoid a public relations disaster.  Let's face it, for better or worse, the old Nokia phone division, with numerous employees and its own factories around the world was an anachronism.  "Everyone" outsources their production to the Foxconns of the world. So now Microsoft gets to deal with shutting factories, laying off employees, etc., while Nokia proper can walk away with clean hands and restart phone production with a modern business structure, if they want to.
  • Actually that's not correct. Nokia has 2 major divisions: the Networks division and the Technologies division. Networks just expanded by absorbing Alcatel-Lucent. The Technologies division is the responsible for the Nokia VR project, Health projects and future smartphones. As for the stock value, yeah that is true. But then again, it's expected when investors are expecting Nokia to bet more on Technologies but Nokia keeps investing on Networks instead.
  • Well, I see where your heart is and it's a lovely sentiment. But honestly, why would Nokia be suicidal? The last time they partnered with Microsoft they almost went bankrupt and had to end up disposing of their manufacturing business.
  • Well unless it's official- which will never happen and the UWA momentum continues, I'm sticking here. My last option will be boring iOS, I'm not buying no android.
  • Your DP alone makes all of your "windows phone is dead" claims that much more ironic... Although, I suppose it takes a dedicated Nokia fanboy to know what the death of a platform actually looks like.
  • Then take the word of this Nokia fanboy: WP is dead.
  • Where were you when they were picking their CEO??? Feels like Microsoft lost a huge oppurtunity there... /s
  • Rut ro!!!  http://www.bloomberg.com/news/articles/2016-04-21/alphabet-sales-profit-miss-analysts-estimates-on-ad-weakness Its the beginning of the end for Android! :)
  • There is hope still Posted from Windows Central for Windows 10
  • MSFT stock price goes up after publishing, so these numbers must be good.
  • Wall Street's knee jerk reaction to the quarter is not positive.  Right now, MSFT stock price -4%. 
  • And right now it is up 0.35%.  Welcome to the stock market, it fluctuates all of the time.
  • Nope.  Right now, MSFT -3.68% in after hours trading.
     
  • It could be worst. Alphabet is -6% after hours.
  • True.  The expected growth for Google was higher.  But remember, Google is still growing faster than Microsoft. The knee jerk reaction of the stock traders for both is not positive.  GOOG -6.01%, MSFT -4.82%
  • They had losses in most sectors and advertising growth saved the day. IMO msft is a more diversified bet.
  • and yet in afterhours trading MSFT ended at +0.19 before the stock market opened again. guess its better to wait and see where it lands before assuming too much.
  • You don't know what you are talking about.  Trust me.  Btw, MSFT -7% today.
  • I wish I could say I still cared, but Microsoft thoroughly killed my enthusiasm for the brand.
  • I still guess Microsoft has a chance to win a few market share in mobile if they:-
    1. Build a phone with good specs.
    2. Keep the price lower than other android OEMs.
    3. Advertise well on TV as UWP apps is the future which is most imp for mobile platform. But as we know Microsoft doesn't want to bet money on Windowsphone and even if they do they take 1 step toward and 2 steps back in making lumias. It can be still be used by professionals and many more.
  • There is no such thing as #2... The chinese oems are flooding the zone with no margin devices chasing market share.  
  • Welcome to IBM 2.0 ...coming soon to the computer market in the next decade.
  • The Cloud, The Cloud.
  • Windows 10 Mobile marketshare now < 1 % and Windows desktop revenue down by almost 30 %. Doesn't look good.
  • I will add shares to my Microsoft position on price dips. Long Microsoft.
  • Me too... :)
  • FY 2016 Q3. Is this right or am I missing something. I think it should be Q1.
  • There is an obvious difference b/w a year and a financial year.
  • Seems like everyone here could have been The Microsoft CEO... Unfortunately everyone applied here in the forums n not at Bill Gates office.. /s
  • Prepare for another round of layoffs.
  • I feel the vision for ms phone is basicly a wait until hardware catches up. It's risky, because Microsoft has to help the phone become trendy and I'm not sure they know how. And unfortunately the best programmers will focus on what's popular and that means even if the surface phone is the best, software will be it's biggest problem even if it runs all of windows 10. I love my phones. Focus, focus plus, 920, 640xl, 950xl. The only thing they have cool is Xbox. And they have to somehow make their phones cool too. Another point is. Even Microsoft makes better versions of there software on the other mobile. Or at least first. Outside of maps and office for continuum.
  • When US markets crashed we all heard about it. When Euopean markets crashed we all heard about it. China is crashing now, but no is hearing about it because China is doing how the Chinses government says it is doing, but you can't hide it from everyones earnings earnings report.
  • I know this may seem far fetched but MS should try to get the upcoming generations in the countries like Nigeria, Brazil, and even South Africa. These are future world super powers that will have a ton of wealth. You could Locke them up now while their still under most people's radar. IDK just a though on how to grow. An area MS has been struggling Posted via the Windows Central App for Symbian