Microsoft's Q4 2018 earnings: Windows OEM revenue grew 7%
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Microsoft has released their earnings report for the Q4 of their 2018 fiscal year (as distinct from the calendar year). Earnings were expected to have improved in the quarter, with PC shipments growing for the first time in 6 years according to the IDC.
Overall for the More Personal Computing division revenue was a massive $10.8 billion, up 17% YoY, driven by Windows, Gaming, Surface and Search.
Windows OEM revenue increased 7% driven by OEM Pro revenue growth of 14%.
Windows commercial products and cloud services revenue increased 23% driven by an increased volume of multi-year agreements and the mix of products that carry higher in-quarter revenue recognition.
The numbers are reflective of a current replacement cycle in enterprise. Consumers are reportedly still reluctant to invest in desktop and laptop computers due to much of their computing now taking place on mobile handsets. Windows OEM non-Pro revenue declined 3% YoY (faster than the market itself) due to pressure in the entry-level category.
Read the full results here.
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