Revenue was
Operating income was
Net income was
Diluted earnings per share was
'The next decade of economic performance for every business will be defined by the speed of their digital transformation,' said
'Demand for our cloud offerings drove a strong start to the fiscal year with our commercial cloud revenue generating
Business Highlights
Revenue in Productivity and Business Processes was
Office Commercial products and cloud services revenue increased 9% driven by Office 365 Commercial revenue growth of 21% (up 20% in constant currency)
Office Consumer products and cloud services revenue increased 13% and Microsoft 365 Consumer subscribers increased to 45.3 million
LinkedIn revenue increased 16%
Dynamics products and cloud services revenue increased 19% (up 18% in constant currency) driven by Dynamics 365 revenue growth of 38% (up 37% in constant currency)
Revenue in Intelligent Cloud was
Server products and cloud services revenue increased 22% (up 21% in constant currency) driven by Azure revenue growth of 48% (up 47% in constant currency)
Revenue in More Personal Computing was
Windows OEM revenue declined 5%
Windows Commercial products and cloud services revenue increased 13% (up 12% in constant currency)
Xbox content and services revenue increased 30%
Surface revenue increased 37% (up 36% in constant currency)
Search advertising revenue excluding traffic acquisition costs decreased 10% (down 11% in constant currency)
Microsoft returned
Business Outlook
Microsoft will provide forward-looking guidance in connection with this quarterly earnings announcement on its earnings conference call and webcast.
Quarterly Highlights, Product Releases, and Enhancements
Every quarter Microsoft delivers hundreds of products, either as new releases, services, or enhancements to current products and services. These releases are a result of significant research and development investments, made over multiple years, designed to help customers be more productive and secure and to deliver differentiated value across the cloud and the edge.
Here are the major product releases and other highlights for the quarter, organized by product categories, to help illustrate how we are accelerating innovation across our businesses while expanding our market opportunities.
Responding to COVID-19
At Microsoft, our focus remains on ensuring the safety of our employees, striving to protect the health and well-being of the communities in which we operate, and providing technology and resources to our customers and partners to help them do their best work while remote. Additional information about Microsoft's COVID-19 response can be found here.
Environmental, Social, and Governance (ESG)
To better execute on Microsoft's mission, we focus our Environmental, Social, and Governance (ESG) efforts where we can have the most positive impact. To learn more about our latest initiatives and priorities, please visit our investor relations ESG website.
Webcast Details
Constant Currency
Microsoft presents constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than
Financial Performance Constant Currency Reconciliation
Three Months Ended
($ in millions, except per share amounts) Revenue Operating Income Net Income Diluted Earnings per Share
2019 As Reported$33,055 $12,686 $10,678 $1.38
2020 As Reported$37,154 $15,876 $13,893 $1.82
Percentage Change Y/Y 12% 25% 30% 32%
Constant Currency Impact$108 $71 $231 $0.03
Percentage Change Y/Y Constant Currency 12% 25% 28% 30%
Segment Revenue Constant Currency Reconciliation
Three Months Ended
($ in millions) Productivity and Business Processes Intelligent Cloud More Personal Computing
2019 As Reported$11,077 $10,845 $11,133
2020 As Reported$12,319 $12,986 $11,849
Percentage Change Y/Y 11% 20% 6%
Constant Currency Impact$32 $42 $34
Percentage Change Y/Y Constant Currency 11% 19% 6%
Selected Product and Service Revenue Constant Currency Reconciliation
Three Months Ended
Percentage Change Y/Y (GAAP) Constant Currency Impact Percentage Change Y/Y Constant Currency
Office Commercial products and cloud services 9% 0% 9%
Office 365 Commercial 21% (1)% 20%
Office Consumer products and cloud services 13% 0% 13%
LinkedIn 16% 0% 16%
Dynamics products and cloud services 19% (1)% 18%
Dynamics 365 38% (1)% 37%
Server products and cloud services 22% (1)% 21%
Azure 48% (1)% 47%
Windows OEM (5)% 0% (5)%
Windows Commercial products and cloud services 13% (1)% 12%
Xbox content and services 30% 0% 30%
Surface 37% (1)% 36%
Search advertising excluding traffic acquisition costs (10)% (1)% (11)%
About Microsoft
Microsoft (Nasdaq 'MSFT' @microsoft) enables digital transformation for the era of an intelligent cloud and an intelligent edge. Its mission is to empower every person and every organization on the planet to achieve more.
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