Microsoft's Q3 2018 earnings: Windows OEM revenue up 4% as Pro revenue boom

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Microsoft has released their earnings report for the Q3 of their 2018 fiscal year (as distinct from the calendar year).

Overall for the More Personal  Computing division revenue was $9.9 billion, driven by Windows, Gaming, Surface and Search, increased 13% (up 11% in constant currency) while profit was up 24% (20% in constant currency).

Windows OEM earnings grew by 11% in the pro market. More premium licenses were sold over the quarter.

In addition, Windows commercial products and cloud services revenue increased 21% (up 17% in constant currency) driven by an increased volume of multi-year agreements and the mix of products that carry higher in-quarter revenue recognition.

Non-Pro revenue continued to slide, now down 8% year on year, possibly indicative of consumers pivoting more and more to other platforms, and Microsoft concentrating increasingly on enterprise customers.

Overall Windows OEM revenue increased 4% (up 4% in constant currency).

Gross margin was 13%, with Microsoft investing in Gaming, Search and AI engineering.

Read the full results here.

More about the topics: earnings, microsoft, microsoft earnings q3 201

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