Microsoft Q4 FY18 Earnings: Azure revenue grew 89%, enterprise mobility install base reaches 82 million

Microsoft today announced FY18 Q4 earnings results. The revenue was $30.1 billion and the operating income was $10.4 billion. Revenue in Intelligent Cloud was $9.6 billion and increased 23% (up 20% in constant currency), with the following business highlights:

Microsoft reported that Server products and cloud services revenue increased 26% (up 24% in constant currency) driven by strong Azure revenue growth of 89% (up 8% in constant currency). Enterprise services revenue increased 8% (7% in constant currency).

Enterprise Mobility is a strong growth area for Microsoft and their installed base increased to 82 million (up from 65 million) which is a 55% growth. Server products revenue including Windows and SQL server grew 8% (up 6% CC), thanks to customer demand for premium server versions and hybrid solutions.

The gross margin dollars of this division grew 23%. The gross margin percentage remain unchanged because of material improvements in Azure gross margin offset by an increased mix of cloud offerings.

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