Microsoft’s Q3 2016 Earnings: Surface revenue increases by 61%


Microsoft today announced its earnings for Q3 2016. As expected, the company’s Surface business is growing rapidly following the launch of the new Surface Book and Surface Pro 4. The company’s Surface revenue has increased by 61% in constant currency in Q3 2016. According to the company, its personal computing business grew by 1%, to $9.5 billion:

  • Windows OEM revenue declined 2% in constant currency, outperforming the PC market, driven by higher consumer premium device mix
  • Surface revenue increased 61% in constant currency driven by Surface Pro 4 and Surface Book
  • Phone revenue declined 46% in constant currency
  • Xbox Live monthly active users grew 26% year-over-year to 46 million
  • Search advertising revenue excluding traffic acquisition costs grew 18% in constant currency with continued benefit from Windows 10 usage

Microsoft confirmed they had more than $1 billion in Surface revenue for only the second time, and for the first time outside the holiday season. They expected this to continue to improve into the next quarter.


Find the full report here.

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