Microsoft Q3 FY20 Earnings: Azure cloud services revenue grew 59%

Microsoft today announced FY20 Q3 earnings results. Microsoft’s revenue in the last quarter was $35 billion and the operating income was $13 billion. Revenue in Intelligent Cloud business segment was $12.28 billion and it increased 27% when compared to last year. Microsoft offered the following business highlights related to Intelligent Cloud business segment.

Microsoft reported that server products and cloud services revenue increased 27% driven by Azure revenue growth of 59% (61% in constant currency). For comparison, Microsoft reported Azure revenue growth of 62% in Q2 2019. Enterprise services revenue increased 6%.

Enterprise Mobility continues to grow and its installed base increased to 134 million which is a 34% growth. Server products revenue including Windows and SQL server grew 11%, thanks to Windows Server 2008 and SQL Server 2008 end of support.

The gross margin dollars of this division grew 30%. The gross margin percentage increased because of material improvements in Azure gross margin offset by an increased mix of cloud offerings.